I started keeping track of where each “profit” really comes from whenever I run into LST or re-staking. The more I record, the more I realize that in many cases it’s not that the protocol suddenly got smarter—it’s that it stacks multiple layers of money together: the bit from basic staking, the bit you borrow out again, plus all sorts of incentives… Put simply, you’re taking in money from more sources, and you’re also taking on more risks—because of those sources too.

As for risk, I used to only watch price swings, but now I’ll write down, “who is taking care of things for me”: could the custody or the contract possibly go wrong, will exits get stuck, and if the underlying validators run into issues, will I get hit with penalties as well? Lately everyone’s been complaining about validator income, MEV, and ordering fairness, and I’ve felt it too… As for those “extra” things on-chain, many of them are actually scraped out from other people’s experiences. After I finish recording, my mindset feels steadier instead—I know what I’m really gambling on. Otherwise the profit numbers look great, but if something truly goes wrong, there’s nothing left to do except curse the sky. That’s it for now.