These days, someone is talking about LST and re-staking again, and honestly, the returns don't fall from the sky: part of it is the block rewards from staking itself, and the rest of that "bonus" mostly comes from lending out the same sense of security to others—someone pays for a service, and you take a cut. It sounds pretty good, but there are risks too: aside from the fluctuations in the underlying asset price, if the contract/permissions/liquidation mechanisms have issues, it might not just be a small profit loss but a direct hit, and when liquidity tightens, it gets even worse.

I personally just treat it like checking the weather—when the hype heats up, I first ask, "Who's paying, and where's the money coming from?" If I can't answer, I avoid it... Mild anxiety, but I can sleep.

By the way, I was a bit late to the NFT royalty disputes, just saw it and thought it was another old topic. Creators want to earn more, secondary markets want better liquidity, but in the end, liquidity still rules, and this "yield story" of re-staking is somewhat similar: everyone wants a piece of the cake, but where the cake comes from needs to be understood first.