In the past couple of days, I’ve seen that whole relayer/restaking and shared security setup again—returns stacking one layer on top of another—talking about it has me itching to jump in. But if you say it plainly, once you stack enough, it’s easy to start treating “risk” as just another part of the returns and overlook it. Especially when the same security is borrowed by several parties at the same time; if something goes wrong, they could end up getting pulled into it together. At that point, you might think it’s diversified, but in reality it’s just everyone squeezed into the same hole.

The modular and DA-layer narrative is pretty similar too. Developers are chatting about it excitedly, and users (including me) look completely clueless: who exactly is paying, who’s providing the backstop, where is the liquidity stuck… I force myself, every time I feel like rushing in, to write two sentences about why I’m entering first—otherwise I just end up stacking illusions. If I stare at the charts for too long, my eyes start to ache; so I’ll just hold off on adding to my position today.