Recently, people have been discussing LSTs and re-staking, and honestly, the returns are not free: part of it is the original block rewards from staking, and the remaining "bonus" mostly comes from someone willing to pay for security/liquidity, or the protocol offering subsidies to lure you in first. The problem is that the risks also stack up: underlying chain risks, LST contract risks, penalties/mistakes in the re-staking layer, and various systemic risks that "look diversified but are actually on the same line."

When cross-chain bridge hacks happen, I instinctively shrink my positions, because many profit routes involve crossing bridges. Sometimes oracles glitch, and the tacit understanding that everyone is "waiting for confirmation" is actually quite real—fast doesn’t mean safe. Anyway, my own standard is simple: I don’t chase yields I don’t understand; being able to sleep well is the most important thing, even if it means earning less.