Recently, I've been looking at the sources of income from LST/re-staking, to be honest, the money doesn't fall from the sky: part of it is the consensus rewards from staking itself, and another part is re-staking to rent out the "security," with project teams offering subsidies, issuing points, or doing airdrops as expectations, so everyone just considers it an additional layer of interest. That's also the problem: when subsidies stop, the food supply is cut off, the points narrative cools down, TVL drops first, and I almost have the flow charts of those on-chain fund movements memorized.

The risk side is more straightforward: the same collateral is repeatedly used for guarantees, with leverage embedded in the structure; contract vulnerabilities, liquidation mechanisms, de-pegging, and malicious re-staking service providers—any incident can trigger a chain reaction. Recently, some places have increased taxes and changed compliance rhetoric, tightening deposit and withdrawal expectations. People's first reaction isn't to study risk models but to withdraw... Anyway, I get nervous whenever TVL drops, but I still keep watching. The charts don't lie, people do.