Recently, I saw a bunch of people talking about LST and re-staking again, honestly questioning where the profits come from. It’s just taking the “security of staking” and working multiple jobs: one for security on the chain, another lending to various protocols as backing. The returns look high, but actually it’s splitting the risk and stuffing it back into your pocket: contract bugs, penalty mechanisms, exit queue, liquidity slippage when you withdraw… Especially with re-staking, if something goes wrong, it’s not just a small loss, but losing both principal and interest together.

By the way, I thought of the current popular social mining and fan coin schemes—“attention as mining.” I feel it’s similar to re-staking: on the surface, it’s adding an extra layer of yield, but at the core, it’s exchanging attention/trust for tokens. When trust collapses, liquidity also collapses, so don’t take it too seriously.

I’ll review the exit paths and penalty clauses of a few re-staking projects I hold first, that’s all for now.