@we8rriqpz

Is restaking APY more sensitive to network activity spikes? Restaking APY is significantly more sensitive to network activity spikes, but in a complex way. A simple spike in Ethereum gas fees would positively affect both base staking and restaking yields. However, restaking APY has additional sensitivity vectors. A spike in activity on a specific AVS (e.g., a cross-chain bridge) could directly increase its fee revenue and thus its rewards to operators, without a corresponding increase in base ETH yield. Furthermore, the launch of a major new AVS can cause a sudden, massive spike in restaking APY as it bootstraps its security with high initial emissions. This makes restaking yield a function of a much wider and more volatile set of network activity inputs.

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