LST and re-pledging, put simply, mean repeatedly using the same “sense of security” as collateral. The returns look pretty tempting, but the money doesn’t just appear out of thin air: part of it comes from inflation/subsidies, part of it comes from others being willing to pay for your “endorsement,” and part of it is actually hiding tail risk in advance. The risks are also very straightforward: if something goes wrong with the underlying staking layer, you can’t escape it; then if you stack another layer of re-pledging/lending on top, liquidation and correlation can blow up together. Even if the on-chain data looks great, it’s only “not yet hitting a mine”—not that you won’t step on one.

Recently, AI Agents with automatic interactions have been all the rage. A lot of people are touting “automatic earning,” but I’m actually more concerned with how they sign and how big their permissions are. Don’t end up handing over your wallet permissions before you’ve even taken the gains. Anyway, I’d rather stack fewer layers now and sleep more soundly… I’m going to get to work.