Recently, I saw someone again treating LST/re-staking as "passive income," and I feel a bit uncomfortable... The earnings, to put it simply, are twofold: one is the inflation/fees from the underlying staking, and the other is the incentives gained from "lending out" the same collateral to other protocols. The problem lies there: the latter is more like attention subsidies, and once the hype (now meme and celebrity shoutouts move too quickly) fades, the incentives get cut, leaving you with the complexity you’re taking on.

The risk I fear most is "layering": one layer is validators/punishments, the second is external services related to re-staking going wrong, the third is liquidity and de-pegging, and the fourth includes governance parameter changes, smart contract rare failures... Usually, everything seems fine, but during a crisis, they all surface together.

What I regret isn’t the outcome, but that I didn’t run through the worst-case scenario before rushing to follow the trend. Veteran players advise newcomers not to take the last step; it sounds annoying, but it’s true. Anyway, I’d rather take less now than sleep poorly.