Recently, I’ve been at it again—stacking LSTs and re-staking that whole setup. To be blunt, the returns mainly come from two places: one is the native staking rewards on-chain, and the other is the “extra service fees/incentives” that sweeten it for you with a bit of sugar. The problem is that the sugar is often the least stable. With the testnet points getting all the buzz, everyone in the group keeps asking every day whether the mainnet will issue tokens… I’m the kind who’s a bit slow to catch on, so I usually wait until everyone has finished their round of talking before I take a look, afraid of getting dragged around by other people’s expectations.

The risks are also pretty straightforward: at the base level, it’s still collateral price volatility plus the liquidation line, with protocol risk and the expectation of “the yield suddenly being gone” layered on top—only for that expectation to fall through. Re-staking packages the risks even more elaborately; once correlation goes high, if something really happens, everyone tries to liquidate together. That “feels like interest rates would suddenly spike” is exactly what I’m most afraid of. In any case, I’d rather take a bit less now and keep enough leverage and liquidity—sleeping well is better than anything else.