A depeg event in liquid staking tokens would create a self-reinforcing liquidation cascade as forced selling of wrapper collateral widens the discount and triggers more liquidations.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"If weETH, which backs 42% of the concentrated cohort's collateral, were to trade at a 10% discount to ETH, the health factors on hundreds of accounts would drop below 1.0 simultaneously. Aave's liquidation mechanism would activate, selling wrapper tokens into a market that is already discounting them. The selling pressure from liquidations would widen the discount, triggering more liquidations."
"Lido's stETH traded at a 7% discount to ETH during the Terra/Luna collapse in June 2022. Rocket Pool's rETH briefly dipped below peg during the FTX contagion in November 2022. These dislocations were temporary, but they occurred during conditions when leveraged positions on the same tokens would have been liquidated."