I just chatted with a friend about re-staking LSTs, and I’m the kind of person who can’t sit still—I end up fiddling around and then scaring myself 😅. Basically, the “yield” is still made by turning your credit into cash: you toss your ETH into Lido or Frax, and they take your assets to run nodes—earning POS rewards and a cut of gas fees; re-staking just packages that yield and sells it to other protocols (like EigenLayer) in exchange for some additional tokens. It sounds pretty smooth, but the risks are actually quite hidden. First, if the underlying assets get targeted—say, hackers steal them via cross-chain bridges—or if the nodes get penalized and slashed, your “yield” can instantly turn negative. Second, during the staking lockup period, if the market suddenly crashes, you can only watch it happen… Recently, people in the group have started spreading rumors again about stablecoin reserve audits and de-pegging. To be honest, after reading several reports, I haven’t seen anyone really believe it. Anyway, every time I verify assets, I first check the contract code before I go to sleep. I’m going back now to revoke the mess of my LST permissions—so I don’t end up losing sleep in the middle of the night.

ETH3.63%
FRAX-0.58%
EIGEN0.80%
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