Piggybacking on Ceteris’s previous post, it appears that Celsius has transferred 428K stETH tokens, which are now likely to be converted into ETH as part of their bankruptcy proceedings. They currently hold ~277K ETH in their withdrawal vault, allowing them to process expedited withdrawals without entering the unstaking queue. Excluding other withdrawal requests, Celsius can immediately withdraw ~64.7% of their stETH holdings once the expedited withdrawals are open.

The ETH in the withdrawal vault accumulates from three sources: newly staked ETH from stETH deposits, withdrawals made by validators exiting, and rewards earned from staking ETH in the execution layer.

This withdrawal vault enhances confidence in the parity between stETH and ETH, as any price differences are likely to be arbitraged. This benefits stETH and attracts more stakers to Lido, offering them the advantage of instant liquidity for withdrawals.