These days I've been looking at LST and re-staking again, and the more I look, the more I feel that the word "profit" is quite alluring. To be honest, money doesn't fall from the sky: some of it comes from the block rewards of basic staking, and the rest—those higher ones—mostly come from lending out the same security again—protocols give you incentives, take on more business (like AVS), or rely on a bunch of complex fee sharing. It looks like earning more on one layer, but actually, it also stacks up the risks.

What I fear most isn't the interest rate drop, but the on-chain "sudden bank run": LST de-pegging, issues with re-staking contracts, validator nodes being penalized or confiscated—several small probabilities stacking up can be really uncomfortable. Recently, there's been talk about some regions increasing taxes and loosening compliance, and when deposit and withdrawal expectations change, everyone's mood shifts from "I'm earning first" to "I'm withdrawing first." At that moment, liquidity becomes much more important than profit... Anyway, I now prefer to earn a little less and want to understand the exit paths clearly before proceeding.