@b258974c

Yes, restaking APY is likely to exhibit higher and more rapid drawdowns during market crashes compared to native staking. This is due to its composite and leveraged nature. A market crash typically suppresses on-chain activity, reducing the fees and rewards generated by the Actively Validated Services (AVSs) that restakers secure. Furthermore, a "flight to safety" may cause a deleveraging event within the restaking ecosystem itself; liquid restaking token (LRT) de-pegging, cascading liquidations, or a mass unstaking as participants seek to reduce risk exposure can abruptly remove both capital and demand from the system. This double impact—lower rewards from AVSs and a potential contraction of the restaking ecosystem—amplifies the APY drawdown beyond the more stable, inflation-based yield of native ETH staking.

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