These days I've been looking at LST/re-staking again, and the more I look, the more I feel that the returns are not falling from the sky... To put it plainly, most of the profits still come from "someone willing to pay": either real on-chain demand (lending, market making, that leftover MEV), or subsidies/incentives just holding things up. Re-staking is even more exciting, essentially using the same collateral to back more places, making it look quite profitable, but the risks also stack up: underlying asset volatility + redemption liquidity + protocol hacking/punishment mechanisms, any of which could hit me, an eternal unlucky guy, hard enough to clear out again.

By the way, current funding rates are extremely high, and in the group, people are arguing whether to reverse or keep squeezing the bubble—I think most of it is just emotional tug-of-war... Anyway, I’ll keep my position smaller for now, only holding what I can sleep peacefully with. If I don’t make money, so be it; at least I won’t keep paying tuition.