Lately I’ve been seeing everyone in the group talk about re-staking, and honestly I’m pretty unsure. Where does the yield come from? Put simply, other people borrow your LST to do more things—like validating, providing liquidity, protocol incentives, and so on—then they share a slice of the pie with you. It sounds great, but what about the risks? FOMO is the biggest source of returns—because in the end, the risks all sit in the underlying assets and the oracle.

Once you take your own LST and stake it again, the dependency stack becomes recursive. If the price feed source has even a small issue—for example, the “wait for confirmation” consensus delay after the recent cross-chain bridge hack, or if the quoted prices are abnormal and not corrected in time—your positions could all collapse. I had been watching a protocol for a while, and its update frequency was shockingly low; one transaction in the middle was literally being propped up by it. The result… never mind.

Anyway, my rule is this: before you re-stake, first make sure the asset you’re staking has reliable oracles to serve as liquidation anchors, and check whether it updates every few seconds or sends updates once per day. Otherwise, you might not get to eat much of the yield before getting cut by an oracle price anomaly. You’ve got to be careful, after all.