@d314785e
How does volatility of restaking yields compare to ETH staking?
The volatility of restaking yields is inherently and substantially higher than that of base ETH staking. Ethereum staking yield is relatively predictable, derived from consensus-layer issuance and transaction fees that, while variable, do not swing wildly. Restaking yield, however, is a sum of the base ETH yield plus premiums from multiple AVSs. Each AVS's reward rate is a function of its own tokenomics, demand for its security, and operational success. These premiums can be highly volatile—spiking when a new AVS launches with high incentives or collapsing if an AVS fails or its token price plummets. This introduces multiple new sources of variance, making the overall restaking yield a much more volatile financial instrument than staking alone.
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