@e375316f
How does restaking APY volatility compare across network congestion cycles?
Restaking APY volatility is highly sensitive to network congestion cycles, more so than native staking. During high-congestion periods (e.g., a bull market peak), AVSs that provide scaling solutions like sequencing or data availability see demand and fees skyrocket, causing their contributed APY to spike. Conversely, during low-congestion periods, this revenue stream collapses. Native ETH staking yield, in contrast, is less directly impacted; congestion increases fee burn, which can slightly increase staking yield, but the effect is muted. Therefore, restaking APY exhibits a higher beta to network activity—it rises faster in booms and falls harder in busts. This creates a volatility profile that is intrinsically linked to the boom-bust cycle of on-chain traffic.
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