Lately, there has been quite a bit of discussion about LST and re-staking. My understanding remains the same: returns don't just fall from the sky. The main part of LST is the basic staking yield plus a little liquidity premium (someone is willing to pay to let you borrow out the "locked time"), and re-staking is more like using the same security to take on multiple positions. The extra returns come from new project incentives, fee sharing, and so on, but essentially it's "more work, more money," not a risk-free premium.

The risks are also quite straightforward: underlying validators/punishment mechanisms, smart contract vulnerabilities, liquidation/unstaking risks, and a layer of "liquidity squeeze after incentives fade." Recently, some regions have been tightening taxes and compliance, sometimes tightening and sometimes loosening regulations. As deposit and withdrawal expectations change, market sentiment first reflects in these leveraged yield strategies, which tend to retreat faster than they advance.

Today, I’ve been staring at on-chain data for so long that my eyes are a bit sore, and my neck is stiff... Anyway, I’m now more concerned about who is actually paying these yields and when they might stop paying, rather than just looking at the annualized numbers. That’s all for now.