Recently looking at LST and this re-staking setup, the returns basically boil down to two routes: one is that there’s real cash flow on-chain (for example, someone pays you security fees/usage fees), and the other is bundling the risk into an annualized return that looks “steady.” Either way, when TVL goes up and down, I can’t sleep… especially with re-staking—layering one on top of another, it’s small, sweet interest most of the time, but if something goes wrong, it’s a liquidation waterfall of a “big gift pack.”

Some people use RWA and US bond yield rates to benchmark on-chain yield products, and I just want to laugh: US bonds come with state backing plus clearly defined rules, while on-chain, so often it’s just an unspoken agreement that “everyone hasn’t run yet.” It’s not that you can’t play—I’m also itchy and tempted to jump in a bit—but what I care about more right now is: who pays the returns, and who gets cut first when they can’t pay. Data doesn’t lie. People do.