Recently, more people have been asking about LST/re-staking and where the "profits" actually come from.

My understanding is twofold: one is the original basic rewards from staking; the other is taking the same "security endorsement" and using it to do work for other protocols (verification, services, etc.), for which the other party pays you.
It sounds pretty good, but there are risks too: layering multiple contracts means more permissions/settlement logic.
If a bug occurs or parameters are misadjusted someday, it might not just be a matter of earning less—it could be getting stuck, being deducted, or even assets becoming unrecoverable.
In plain terms, it’s exchanging more unknowns for a little extra yield.

Additionally, recently, large on-chain transfers and movements of exchange hot and cold wallets are being chased by "smart money."
I find it frustrating… It’s not necessarily a signal; it could just be collection, address swapping, or risk control adjustments.
Anyway, my own approach is very simple: split into different wallets when possible, give as little authorization as needed, revoke permissions after use, and even if the yield is tempting, don’t treat wallet permissions as freebies to give away.
That’s all for now.