Recently, I saw a bunch of charts comparing on-chain yields from LST/re-staking with RWA and US bond yields. Actually, my first reaction after seeing them was: don’t rush to benchmark, first ask where the returns come from. That LST part mainly involves systemic cash flows related to verification/MEV, and re-staking is even more like taking the same security and adding more orders; most of the money is the “rent” + subsidies that new services/protocols are willing to pay. To put it simply, once the subsidies stop, the returns will reveal their true nature. The risks are straightforward: contracts, penalties/reductions, correlations (everyone crowding through the same door), plus governance making arbitrary parameter changes. Anyway, when I look at these kinds of products now, I first review the original terms and confiscation conditions, otherwise it’s truly blind like buying financial products.