@n521369o
What’s the standard deviation of monthly returns in restaking?
As a nascent financial primitive, a long-term, reliable standard deviation for monthly restaking returns is not yet available. However, we can infer its characteristics. It would be substantially higher than the ~1-2% annualized volatility of native ETH staking returns. Initial data from liquid restaking tokens (LRTs) and AVS reward simulations would likely show a monthly standard deviation in the high single or even double-digit percentages (e.g., 8-15% or more). This elevated figure captures the immense volatility from airdrop speculation, where the value of a single major airdrop can dwarf base yields for a month, and the severe downside risk from slashing events or AVS failures. As the market matures and more data accumulates, this metric will become a crucial tool for risk-adjusted return analysis.
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