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Can deep liquidity in LST markets buffer restaking shocks? Deep, resilient liquidity is the single most important factor in buffering restaking shocks and preventing cascades. Ample liquidity allows for large volumes of selling and redemption to be absorbed without significant price deviations. It provides the "counterparty" during a panic, enabling leveraged positions to be unwound and fearful holders to exit without causing a catastrophic de-peg. However, "deep liquidity" is often a fair-weather phenomenon. In a true systemic crisis, liquidity can vanish instantly as market makers withdraw to limit their risk. Therefore, while deep liquidity is a critical buffer, it cannot be entirely relied upon; the design of the system must be robust enough to survive even when liquidity is temporarily impaired.

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