Recently, I saw a bunch of people discussing LSTs and re-staking again, and it seems like everyone defaults to the idea that "the extra yield is just falling from the sky"... Honestly, it's just splitting the same safety into different parts: one part for the main chain's staking rewards, another part used as "collateral" for other services, plus some points/subsidies as sugar.

I can roughly understand where the returns come from, and the risks are pretty straightforward: with multiple penalty mechanisms, the more contracts and intermediaries there are, the harder it is to tell which link will break first when something goes wrong; liquidity is even more obvious—seeing quotes, but during a panic, the floor price can drop faster than emotions. Recently, retail investors have been complaining that validators are taking too much, and about MEV and unfair ordering, I can only say: the more upstream can skim, the more people below love to use "extra yield" to lure you into taking risks. Anyway, I’ll just stay on the sidelines, watching the show without rushing to intervene.