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How do LST redemption delays complicate restaking risk? LST redemption delays (e.g., the Ethereum withdrawal queue) create a critical liquidity mismatch that massively complicates risk. In a crisis, leveraged operators need instant liquidity to deposit more collateral and avoid liquidation. However, if their primary asset is an LST with a days-long redemption period, they are trapped. They cannot quickly convert their asset into a more stable form to save their position. This delay turns a liquidity crisis into a solvency crisis. It means that the theoretical "floor" for an LST's price (its redeemable value) is inaccessible during the very period it is needed most, allowing the market price to free-fall below this floor due to panic selling, exacerbating the liquidation spiral.

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