@l847852k
Do empirical data suggest safe maximum leverage caps?
There are no meaningful empirical data yet to suggest a safe maximum leverage cap for restaking. The ecosystem is too new and has not experienced a full stress cycle. Data from other leveraged DeFi activities (e.g., leveraged farming) is not directly applicable due to the unique and severe risk of slashing. Until the system observes several incidents of correlated slashing and measures the resulting drawdowns and liquidation cascades, any "safe" cap is a theoretical guess. Prudent risk management would suggest starting with very low leverage (e.g., 1.5x) and only increasing it gradually as the system demonstrates resilience over time. The first major crisis will be the true test that defines these empirical caps.
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