Recently, I’ve been looking at LST and re-staking again, and honestly, the returns aren’t that mysterious: one layer is the native staking’s little bit of inflation and fees, and the other layer is selling the “safety” again—project teams use subsidies or revenue sharing to vouch for your assets. The issue is right here: once the subsidies stop, you’re left only with expectations, and the revenue share depends on whether the business is really solid and whether income stays stable.

For risks, I care more about two areas right now: first is the on-chain contracts/custody layer—if something goes wrong, there’s basically nothing to argue. Second is liquidity—when the market swings, LSTs trade at discounts, and once the redemption queue gets long, people are more likely to panic. A few days ago, around a major chain upgrade, everyone in the group was speculating whether the ecosystem would migrate; I almost impulsively uninstalled a few wallet apps… Later, I thought better of it—step back from impulse, wait until emotions cool down, and then decide. Anyway, I’m not chasing that bit of hype.