Financial Dynamics and Interconnected Risk of Liquid Restaking
This study addresses the complex systemic risks introduced by liquid restaking, which, while enhancing yield, demands empirical analysis of its return drivers and risk transmission mechanisms. Focusing on the Renzo protocol, the work integrates DeFi asset flow mapping, OLS regression, Granger causality tests, and random forest feature importance to identify EigenLayer’s total value locked, liquid restaking token yields, and multi-chain expansion as key predictors of returns—revealing the latter’s dual-edged nature. By constructing a cross-protocol risk transmission framework and conducting stress tests, the analysis finds that current bridge-related risks do not yet pose a systemic threat; however, the growing interconnectivity warrants ongoing vigilance.