@b258974c
Restaking (Enhanced Risk/Reward): Restaking APY is a composite yield: ETH Staking Yield + AVS (Actively Validated Services) Rewards. During a market crash:
AVS Demand Collapse: The demand for cryptoeconomic security from AVS (new DeFi protocols, oracles, etc.) can plummet as their own token values and funding crash. They may reduce the rewards they offer to restakers.
TVL Outflows: Users may unstake and sell their liquid restaking tokens (e.g., rsETH, ezETH), forcing restaking pools to de-leverage and reducing the efficiency and yield for remaining participants.
Correlated Failures: A severe market crash could trigger slashing events across multiple AVSs simultaneously, leading to a catastrophic drawdown that pure staking would never experience.
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