Eating potato chips while browsing on the chain, I recently saw a bunch of people talking about LST, re-staking, and so on. Basically, there are only two sources of yield: one is the original reward from staking the underlying asset, and the other is the rent/incentives earned from "borrowing out the same security again." It sounds pretty attractive, but the risks are quite straightforward: the extra gains often come with additional constraints—contract bugs, operational changes to parameters, issues with the re-staking service leading to penalties, or even when liquidity tightens and you want to exit, you find yourself in a long queue that feels endless. Just as the main public chain is about to upgrade or maintain, everyone in the group is speculating whether the ecosystem will migrate. I’m actually more concerned about whether these derivatives will remain stable after the upgrade, and whether the path might suddenly become very strange. Anyway, what I fear most isn’t slowness, but chaos: I can wait if it’s slow, but if it’s chaotic, I won’t even know where the losses are.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned