I've recently been looking into LSTs and re-staking, and honestly, the returns aren't just falling from the sky: part of it is the original block rewards from staking, and the other part is the incentives/fees gained from "renting out" the security. It sounds pretty attractive, but the risks also stack up: underlying chain issues, protocol hacks, malicious nodes, and liquidity runs where many people redeem at the same time... at that point, LSTs might not actually give you a 1:1 ratio.

These days, the funding rates are extremely volatile again, and in the group, people are arguing whether to reverse or continue squeezing the bubble. I'm actually more inclined to "wait." Wait for confirmation, wait for a pullback, wait until I understand clearly: whether this extra yield is really worth taking on more protocol risk. Anyway, my current approach is to diversify, not go all-in, and just take profits when I can.