Recently, people have been talking about LST and re-staking again. To put it simply, the main source of returns isn't just falling from the sky: one part is the basic yield from consensus mechanisms plus MEV profits, and the other part is more about "people willing to pay for security/liquidity," such as new services, various points, subsidies... It sounds quite attractive, but after watching the mempool for a while, I develop a bit of a professional bias: where does the money come from? Someone will eventually have to pay.

The risks are also quite straightforward: the underlying staking already involves penalties, confiscations, or node failures. Re-staking is like taking the same collateral and stacking more promises on top, which increases the correlation. When a chain of liquidations or protocol failures happen, slippage can really catch people off guard. Recently, on the L2 side, there's been chatter about TPS, fees, and ecosystem subsidies. I actually react a bit slowly to these... I just look at on-chain congestion and transaction quality. Whether there are many subsidies or not isn't something I calculate much. Anyway, I prefer to keep leverage and expectations low to sleep soundly.