These past two days, I’ve been looking at LST and re-staking again, and the more I look, the more I feel that the returns aren’t something falling from the sky… To put it simply, it boils down to a few pots: the basic interest from underlying staking, plus incentives the protocol offers to pull TVL/build data subsidies, and also the “extra yield” that bundles the risk and sells it to you. I complain that this whole setup is too good at telling stories, but on the other hand I can’t help myself from taking a small position just to get a taste—pretty contradictory.

Don’t pretend you can’t see the risks: the same collateral gets reused everywhere, and once something goes wrong anywhere, it becomes a chain-reaction explosion; plus, contract/node operations/penalties and confiscations can all become potential landmines. Recently, the modularization and DA layer narrative has had developers chatting up a storm, but users actually care more about where I put my money won’t suddenly disappear. Anyway, I’m not really looking at APY anymore—I’m focusing more on real users and retention; no matter how pretty the TVL looks, it could still be a bubble.