Recently, I saw a bunch of people hyping LST and re-staking as if “adding one more layer means getting one more share of the money.” To put it plainly, there are only two sources of yield: one is the normal interest from the underlying staking/validators; the other is that you sell out the same security’s safety again, and you rely on other people to pay for it (protocol subsidies, points, and incentives also count). What you’re getting isn’t a “free handout”—it’s “someone else is taking the risk on the other end.”

And don’t pretend the risks aren’t there: contract/oracle failures, slashing punishments and knock-on effects, liquidity depegging the moment there’s a run, plus re-staking piled on top of re-staking—if something goes wrong, it could turn into a chain of rug pulls. But everyone will comfort themselves with the four words “systemic event,” which is pretty thoughtful.

Recently, when comparing RWA and US government bond yields to on-chain yield products, I suggest asking one question first: the government bond interest comes from taxes and credit backing, while your on-chain returns rely on code, incentives, and human nature. If you want to play, go ahead—but don’t borrow money to add to your position, and don’t treat the “yield curve” as a psychological bandage.