I just took a LST and pledged it again, and my fingers actually felt a bit hot when I confirmed... Earnings, to put it simply, are twofold: on one side is the original staking rewards, and on the other side is packaging and selling the "security/validation services," with the protocol giving you some points or tokens as subsidies. The nicer way to say it is stacking yields; the less nice way is stacking against counterparties.

The risks are pretty straightforward: LST itself has de-pegging and redemption queue issues; the additional staking layer adds contract risks, parameter changes, or even governance decisions made on a whim. Recently, cross-chain bridges have been hacked again, revealing that "more layers of packaging mean more vulnerabilities." Then there are oracles that go haywire, with the community saying "wait for confirmation"... The core of this consensus is everyone is afraid of being the last one to take the fall.

My current setup is pretty basic: layered positions, with the ones I can exit at any time set aside, and I never leverage on the ones that are locked in; any extra earnings are first considered as money that might be lost again. If I get wrecked, I’ll review and analyze it afterward—this is how I’m doing it for now.