These days, I've been looking at LST and re-staking again, everyone is focused on the "extra returns," but honestly, money doesn't just fall from the sky. The part about LST is easier to understand: the rewards from staking itself, plus a bunch of people using it as collateral to play, when liquidity and leverage increase, the returns seem to multiply. Re-staking is more like selling the same "security backing" multiple times; the returns come from fees paid by other protocols, but the risks also stack up: contract issues, not understanding the penalty mechanisms, and difficulty when liquidity is squeezed during a run.

Recently, RWA and US Treasury yields have been compared to on-chain yield products, and I can't help but feel a bit tense... Many on-chain products are "you bearing the tail risk" paying out, not risk-free interest rates. Forget it, to put it plainly: when yields are high, first ask "who is losing money / who is bearing the risk," I myself now only dabble with small positions, just enough to turn off the candlestick chart before bed.