Recently, I came across a bunch of screenshots of LST/re-staking, and the returns look pretty attractive, but my mind automatically jumps to that meme: the wool comes from the sheep… Basically, the money mainly comes from staking rewards, plus a bit of the “people are willing to pay for security/consensus” fee. But once everyone starts to squeeze in, and the congestion gets high, what’s left are all kinds of packaging fees, liquidity discounts, and by the time the rules change, you might not even notice.

Don’t pretend you don’t see the risks: contract issues, penalty mechanisms (slashing) that punish collectively, LST de-pegging that can crash your mentality faster than a K-line. I first threw in 20 U to test the waters, and also set a rule for myself: don’t use high leverage, and don’t take “seems stable” as truly stable.

By the way, that mainstream public chain is about to upgrade/maintain, and the community is speculating whether the ecosystem will migrate. I just want to say: when the chain is tinkered with, the first to lose sleep are usually those who stake and re-stake… I’ll wait and watch for 10 minutes first.