@we8rriqpz

Are stress periods revealing larger volatility spreads? Theoretical models strongly suggest yes. While we lack extensive historical data, the fundamental structure implies that during stress periods (like the May 2022 UST crash or the March 2020 Black Thursday), the spread between the volatility of restaking yields and baseline staking yields would widen dramatically. The "insurance-like" premiums from AVSs would evaporate faster than core protocol security demand.

0 reply

0 recast

0 reaction