On Lido’s blog, it said
“The preferred solution would require eth1 withdrawal addresses to be accepted by the Ethereum community. If/when this happens, the withdrawal credentials will instead be set to an upgradeable smart contract that will handle withdrawals when they are enabled – an entirely non-custodial liquid staking solution. This should happen in the near future and the feasibility to migrate to this kind of solution as soon as it’s practical will be evaluated from time to time”
ETH 2.0’s latest spec now allow this. Will Lido be migrating to smart contract based withdrawal soon? This would make the protocol fully non-custodial.