These days, I see people watching large on-chain transfers and hot/cold wallets on exchanges, shouting "Smart money is coming" whenever there's movement.

I’ve been watching for a while and just feel like I’m looking at delivery logistics: just because the truck is moving doesn’t mean you’re getting rich…

LSTs and re-staking yields, frankly, aren’t just falling from the sky; most of the time, someone is paying for them (inflation, fees, incentives, or those strategies that bundle risks).
The risks are pretty straightforward: the underlying staking already has a chance of penalties or node failures, plus there's liquidity discount, contract vulnerabilities, and re-staking “outsourcing” security to a bunch of projects. When things go wrong, it’s hard to even pinpoint where the problem is.

My current approach is pretty cautious: take less of what I understand, use it as a “more convenient staking”; for yields I don’t understand, I’ll just pretend they don’t exist for now.
Anyway, the keyboard is still clicking, and I still believe: in the long run, the blockchain space will become more valuable.