LST / re-staking this whole setup—put simply, the returns aren’t just falling out of thin air. Most of it comes from two ends: the interest from the underlying staking, plus project subsidies/incentives. Subsidies look good, but they’re also the most fragile. Once sentiment shifts, they stop. That remaining real yield can’t support expectations, so price pressure and redemption pressure rise together.

The risks I care about more are twofold. First is liquidity. LST may look like it can be sold anytime, but if there’s a wave of unlocks—or everyone starts staring at the token unlock calendar and yelling, “There’s selling pressure”—depth can thin out instantly, and discounts can show up very quickly. Second is re-staking, stacking the same asset on top of itself. When something goes wrong, it’s not just “you earn less.” It triggers a chain reaction. Whether it’s liquidations, penalties/confiscations, or contract loopholes—whichever comes first, it’s not something you can easily predict.

In any case, I’d rather have a bit less return, and I’ll be watching the redemption queue, the discount range, and the speed of large withdrawals… The excitement is for other people; stepping into a trap is my problem. For now, that’s it.