Recently, I’ve been watching the LST and re-staking lines. To put it simply, the returns are not just falling from the sky: part of it is the safety budget of the staking itself, and the other part is the service fee/incentive for "selling the same safety again." The former is relatively easier to understand, while the latter is more like the layered structure in liquidity pools—looking good in a tailwind, but in a headwind, it depends on who pulls out first.

The risks are also straightforward: de-pegging, redemption congestion, permissions/upgrades at the strategy layer, and the fact that "yield volatility is actually subsidies" is the easiest to overlook. Recently, there’s been talk about tax increases and compliance—sometimes tightening, sometimes loosening. I feel that as everyone’s expectations for deposits and withdrawals change, the on-chain sentiment immediately propagates into redemption discounts... I no longer bother explaining. Anyway, my own approach is: first look at the redemption path and who will cover losses in worst-case scenarios, then look at the yields.