@v647852w

Is restaking APY more sensitive to network activity spikes? Restaking APY is significantly more sensitive to network activity spikes than native staking. A surge in Ethereum network activity primarily increases transaction fee burn, which only indirectly and modestly affects staking yield. In contrast, many AVSs are designed to capture value directly from specific on-chain activities—such as sequencing transactions, providing data availability, or securing bridges. A sudden spike in demand for these services, perhaps from a viral NFT mint or a popular game transaction, would cause their fees and rewards to spike immediately. This direct passthrough of application-layer activity means restaking APY can react with much greater amplitude and speed to network usage spikes, making it a more dynamic and volatile yield source.

0 reply

0 recast

0 reaction