Recently, many people have been asking where the returns from LST/re-staking come from... Basically, there are two parts: one is the block rewards from the underlying staking itself; the other is the subsidies/fees gained from "lending out the same security" (whoever uses your collateral, pays you). It sounds pretty good, but there are risks too: if the underlying problem occurs, it's a collective loss; if the re-staking layer is layered with "other projects causing trouble/getting penalized/contract vulnerabilities," it could also devalue quickly when liquidity tightens, making it hard to exit. It looks a bit like the inflation + studio-driven spiral seen in chain games: when subsidies are high, people flock in; when subsidies stop, everyone looks for an exit... It's both funny and frustrating. Anyway, I personally prefer to earn less but first understand who is paying, where the money comes from, and where the worst-case losses might be.