Recently, I've been looking into LST/re-staking again. To put it simply, the returns are not just falling from the sky: part of it is the reward originally given by the consensus layer, and the other part is you lending out the "security endorsement," which others are willing to pay for. It sounds quite reasonable, but the risks also stack up—protocol-level penalties and punishments, smart contract vulnerabilities, liquidity runs, and a bunch of governance risks where you only find out when rules change.

These days, the incentives on testnets and points have skewed everyone's mindset again, and the group is guessing every day whether the mainnet will issue tokens... I won't argue about it; once such expectations get inflated, the pricing tends to distort easily. For someone like me who’s a semi-amateur quant, I prefer to treat my positions as backups for redundancy: don’t put all your assets into the same "re-staking narrative," leave some cash flow and exit channels, and sleep a bit easier.