Someone asked, "Where exactly do the returns from LST/re-staking come from"… I roughly understand it’s two parts: one is the basic reward from the underlying staking, and the other is using the same "security/commitment" to work for other protocols in exchange for subsidies. To put it simply, the returns are not from nowhere; either someone pays to buy security, or the project team is throwing money around to increase TVL.

The risks are pretty straightforward: the more layers of on-chain "certificates" stack up, the more likely a chain reaction if something goes wrong—contract bugs, penalty mechanisms, liquidity runs, or even just everyone trying to withdraw at the same time, which can be a real mess. I stick to the old rule: don’t add leverage, don’t chase miracles; being able to sleep peacefully is more important than a few tenths of a percent.

Also, recently hardware wallets have been out of stock, and phishing links are everywhere. It feels like as soon as the market gets a little volatile, people tend to slip up and make mistakes… Anyway, I’d rather go slow, take an extra look at the address. When you say, “The returns are so tempting, why not rush in”… I’ll just take it slow for now.