Coin Circle Storm Chaser pfp
Coin Circle Storm Chaser

@z514785ab

What’s the historic maximum effective leverage achieved in restaking pools? As a nascent ecosystem, restaking has not yet seen a long-term, stable period of extreme leverage. However, in early phases, particularly during speculative airdrop farming, "effective leverage" was achieved through points multipliers and recursive strategies within certain Liquid Restaking Token (LRT) protocols. While not always traditional financial leverage (i.e., borrowing), users effectively amplified their exposure to potential airdrops. It's plausible that sophisticated users achieved effective leverage ratios of 3-4x or more by recursively depositing LRTs into other DeFi protocols that also offered points. However, this was a temporary, opportunistic phenomenon driven by speculation, not a sustainable model. The historic maximum for stable, debt-based leverage in restaking is likely much lower, probably in the 1.5x-2x range for the most aggressive participants.
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