Recently, someone asked me again about LST/re-staking, "How does such a lucrative yield come from?" Basically, there are two points: one is the basic return from staking itself, and the other is taking the same collateral and using it for other protocols as "security backing" to collect rent. The second sounds sophisticated, but it's actually a leveraged credit business: who pays you? New protocols, subsidies, and people willing to buy your "sense of security."

Don't pretend not to see the risks either: if contract permissions are changed, limits are relaxed, the collateral might be used for things you never agreed to; and then there's correlation—when the whole market is draining liquidity/deleveraging, LST discounts + liquidation chain reactions happen so fast you can't escape. Oh, and recently, large on-chain transfers and hot/cold wallet movements on exchanges are blown up as "smart money," but don't get too excited—it's probably just arbitrage, collection, risk control rebalancing, and has nothing to do with betting on directions. Anyway, I’d rather earn less than become fuel for others’ profits.