Recently, I've been looking at LST and re-staking again, and honestly, the returns don't fall from the sky: part of it is the original reward from underlying staking, and the other part is continuing to use the "security/consensus" credit card to endorse other services, earning subsidies or shares in return. When subsidies are high, it looks quite attractive, but essentially, it's more like a budget during the user acquisition phase, not a perpetual motion machine.

The risks are also quite straightforward: first, layering is too deep, with on-chain contracts/middleware/bridges/delegates, any link failing could cause a chain reaction; second, liquidity—once everyone tries to run, LST discounts will happen faster than you expect; third, rule risks—fines, delayed redemptions, governance parameter changes... all could hit you on the head.

Recently, I also feel a bit envious of others who got in early during the testnet incentives and points wave. Who knows if the mainnet will issue tokens or not? I mainly experience with small positions, avoiding crossing too many layers when possible, saving on gas fees, and not turning "gas saving" into "life saving."