Recently, there has been a lot of discussion about LST / re-staking, and frankly, the returns are not coming from thin air: the basic part comes from staking rewards, and most of the rest is using your security to "rent out" your safety. Someone pays to buy protection / priority / services, and you just collect the ticket. The problem is straightforward: risk is not volatility, but correlation. When something goes wrong, everyone rushes to withdraw, leading to LST discounts, exit queueing, layered contracts/governance/penalties in re-staking, creating a chain reaction of stepping on each other.

I am more like an honest person watching liquidation hotspots and funding rates, rather than a believer who takes flying knives after hearing stories. By the way, the NFT royalty disputes are quite similar: everyone wants to get more, but when liquidity tightens, the ones who are sacrificed first are always the ones who discover the risk last. Anyway, on my side, I only engage with projects where I can clearly break down the source of returns; if I can't, I just pretend I didn't see it.