Recently, I’ve been reviewing notes on re-staking/sharing security, and the more I look at it, the more I feel: the returns can be compounded, but the risks can also "secretly stack up," especially the illusion of "seems like you’re earning a little on everything" that’s easiest to get caught up in. To put it simply, if you use the same collateral to back multiple protocols, it could all go wrong at once if something happens, and splitting it into multiple layers doesn’t make it safer.

These days, everyone is comparing RWA, U.S. bond yields, and on-chain yield products together. I understand the desire to find an anchor, but don’t get carried away and treat them as the same thing… On-chain “returns” sometimes resemble compensation for bearing certain tail risks, not something you get for free. Anyway, my current approach is pretty straightforward: first figure out the source of the yield, then see if the worst-case scenario could wipe me out, and only sleep well if it doesn’t. That’s it for now.