To be honest, the whole restaking talk has really been getting a bit too intense lately. A bunch of projects keep going on about LSTs, saying the returns are how high and how steady they are—I almost couldn’t hold myself back and rushed in. But then I thought about it and decided to first figure out where the money behind it actually comes from. Plain and simple, most of the returns still come from node operations and diluted tokens, with a bit of a nested “stacking” strategy thrown in. But what about the risks? On-chain contract vulnerabilities, liquidity getting detached, restaking amplifying volatility… if anything in the chain goes wrong, liquidation isn’t something small leverage can weather.

This week’s macro sentiment is also kind of strange. Rate-cut expectations are swinging back and forth—faster, then slower—and the dollar and risk assets are moving up and down together, which leaves people a bit bewildered. Anyway, I’m just going to watch from the sidelines for now, and I won’t touch my small position. And the fear is real—truly real fear. Last time I almost ended up stuck in it; thinking about it now makes me break out in a cold sweat. In short, you can play restaking, but you need to be clear about what you’re placing your bet on—don’t just look at the returns and ignore the traps.