Recently, I've been looking at LST/re-staking again. To put it simply, most of the returns are not generated out of thin air: some come from the basic yields of underlying staking, and another part actually comes from "someone providing subsidies/incentives" to get you to help promote, stack TVL. When new L1/L2 projects launch incentives, it becomes lively, but old users complaining about "mining, selling, and dumping" isn't without reason; when subsidies stop, what's left are the real demands.

The risks are more hidden here: penalties and confiscations at the underlying layer, smart contract vulnerabilities, the correlation after re-staking layers (a market shake could cause everything to shake together), and liquidity issues. Usually, it looks like you can withdraw, but when things get crowded, it might not be so easy. I’ve now adjusted my target downward, no longer chasing that "seems very attractive" peak, but instead focusing on clearly understanding where the returns come from and how much I could lose in the worst case, so it’s suitable for my low-frequency positions... For now, just like this, I’ll slowly review and analyze.