Recently, someone asked me again where the "interest" for LST/re-staking actually comes from. To put it simply, the basic layer still relies on staking consensus rewards plus liquidity premiums; stacking re-staking on top is mostly about "renting out safety" in exchange for subsidies/fees, but subsidies are not perpetual motion machines. When the market is hot, it looks attractive, but when it cools down, you're left with a bunch of complicated terms.

The risks are also quite straightforward: one layer of smart contracts, one layer of penalties/operations, plus the layer of liquidity squeeze. The more layers stacked, the more it feels like the night is being extended. Recently, during extreme funding rate periods, there was a debate in the group about whether to reverse or continue squeezing the bubble. I actually care more about whether there are real users on the chain paying fees.

If I had chased the most aggressive re-staking for a little more yield back then, I might be staying up every day watching announcements… Forget it, since the timing isn’t right, I’ll just slow down for now.