After scrolling through my wallet and taking a look at the LSTs and the re-staking pools, a question came to mind: where exactly does the yield come from? Put simply, the interest on LSTs is still basically tied to staking. Re-staking just stacks one more layer of AVS rewards—but at its core, it packages security and liquidity and sells it to you. Think about it: the underlying asset is ETH, and then you add another layer of smart-contract logic on top. The risk is hidden deep in between—not only “big” protocols are dangerous. Some code vulnerabilities in smaller-track AVS, as well as slashing conditions, are simply impossible for you to defend against.

Lately, I keep seeing RWA and U.S. Treasury yields compared side by side with on-chain yields. Honestly, can that little bit of on-chain yield really match the stability of U.S. Treasuries yielding 4%+? It can’t. But what people are chasing is leverage and expectations of an airdrop—so it turns into a different kind of game. Anyway, I think before playing re-staking, you should first make it clear what you’re actually getting: is it steady interest like stable ticket cash flows, or is it just a bet that the future slashing/penalty rate won’t blow up? For now, that’s it—I’ll go check the movements of a few large addresses next.