Recently, people have been asking me again what exactly you earn from LST / re-staking… To put it plainly, the returns you get from LST mainly still come from the underlying staking rewards, plus a bit of liquidity incentive. Re-staking is even more like “borrowing out the same security again to put it to use”: you can earn higher fees/rewards, but there are also more intermediate steps—contract risks, validator/operator mistakes, and penalties (slash). And those might not be as simple as just losing a little profit.

In the group these days, stablecoin regulation updates, reserve audits, and all kinds of screenshots claiming “it’s about to de-peg” are flooding the feed, making people restless. Instead, I’d rather trim my positions: I’d prefer to earn a bit less, choose return sources I can clearly understand, and don’t let all that stacked-up interest trick you into feeling too secure.