Recently, I saw a bunch of people hyping LST/re-staking as if it's "getting paid just by lying around"... Don't get too excited yet; returns don't fall from the sky. Honestly, the small amount you're getting is mostly: protocol subsidies + the risk premium others are willing to accept for taking on your risk, plus a bit of "more complex systems mean higher prices" pricing.

What about the risks? On the surface, it's staking, but in reality, you're using the same security to double-pledge: smart contract vulnerabilities, malicious nodes, penalty mechanisms, liquidity issues, redemption queues... Any of these pitfalls can make you suffer. Recently, people also like to compare RWA, US bond yields, and on-chain yield products. I can only say: US bonds at least clearly state who owes whom money, while many on-chain products are "whoever ends up holding the bag pays."

If I had also chased after those "highly attractive annualized" pools back then, I’d probably still be asking in the group why my withdrawals haven't arrived... Anyway, I’ll just say this now: the more "stable" the yield, the more you should ask who it’s actually protecting from a risk event. That’s all for now.