Not long ago, I thought LST/re-staking was just "deposit ETH and earn extra interest out of thin air," like finding an umbrella on a rainy day... Now I understand a bit more: the returns basically come from two sources—one is the original staking rewards, and the other is you using the same collateral to work for other protocols, which in turn gives you some subsidies to boost security and liquidity (many are still supported by expected points).

The risks are not mysterious either: contract issues, de-pegging, penalties, re-staking failures that could cause a cascade, plus liquidity crunches that feel like sudden cold winds, with price charts and sentiment catching a cold together. Recently, the testnet incentives have everyone guessing "Will the mainnet issue tokens?" I also get itchy to participate, but now I prefer to treat it like a weather forecast: it might clear up, or it might just be a cloudy filter... Better to keep positions and expectations low, and sleep peacefully.