These days, I've been seeing a lot of discussions about LST/re-staking.

Honestly, I also get itchy to participate, mainly because of the "points" and "testnet incentives" setup, which easily makes me imagine that the mainnet might also issue tokens, and I feel like I might be missing out...
Basically, it's FOMO, not that I think it's very stable.

But if I think calmly, where does the yield come from?
Some of it is genuine staking rewards, and the rest is more like "renting out security/attention" for subsidies or arbitrage premiums.
There’s also risk involved: an extra layer of protocol, an extra layer of permissions/contracts, an extra layer of potential cut or run on funds, and in extreme market conditions, liquidity can be pulled out quickly, causing discounts that outpace gains.

My current approach is:
It's okay to participate if I want, but only with the layer of position that "can slowly zero out without affecting sleep," and don’t treat points expectations as cash flow.
First, survive; there will be many opportunities later.