Recently, I've been looking at LST and re-staking again. To be honest, the returns don't fall from the sky. The main point of LST is still the staking rewards minus various fees; re-staking is more like using the same security to take on multiple "jobs." The project team gives you subsidies or fee sharing. The initial numbers look good, but I feel uneasy inside.

The risks are also very straightforward: contract permissions, too many detours in fund flow, redemption queues and discounts, underlying issues causing a complete wipeout, and re-staking adding the uncertainty of "what others do with your endorsement." Recently, with extreme funding rates, people in the group argue whether to reverse or continue squeezing the bubble. I actually want to erase the leverage line from my mind first, write out the interaction checklist clearly, and only engage when I understand it. If I don't understand, forget it.