Yields on staked Ether have reached their lowest historical baseline following a steady inflow of institutional capital into network validation protocols. The growth in active validators has diluted base reward rates across primary consensus layer mechanisms.
Restaking Protocols Offer Marginal Spreads
To compensate for lower native yields, treasury management desks are increasing exposure to liquid restaking protocols. However, this strategy introduces smart contract composability risks that risk committees are currently working to quantify.