Recently, I've come across a bunch of discussions about LSTs and re-staking again, and it feels like everyone is watching "that extra little profit." To be honest, money doesn't just fall from the sky: part of it is you swapping your existing staking rewards for a more liquid wrapper, and another part is using the "same sense of security" to endorse more services, with others paying you fees/subsidies. It sounds pretty good, but the longer the chain, the more points where things can go wrong: contracts, oracles, liquidation mechanisms, operator permissions, and the most annoying—if everyone tries to run at the same time in extreme cases, liquidity isn't enough, and they start stepping on each other.

What I fear most isn't losing money, but that if something goes wrong, you don't even know which link in the chain failed first, and you can only replay a bunch of transactions to find the "first blood."

By the way, recently, the debate over privacy coins/mixing coins and their compliance boundaries has become quite divisive. I actually understand it better now: many of the "profits" are really just bearing gray risk for others, just not written into the annualized returns. Anyway, when I look at staking now, I first ask myself: if one of the regulators/service providers/validators crashes, is that little bonus on the books enough to keep me from losing sleep? That's all for now.