Recently, someone asked me again where the "profits from LST/re-staking" actually come from. To put it simply, it's not coming from thin air: one part is the native staking reward for block production, and another part is selling the same security again (as "insurance" for other services/protocols). Someone has to pay for it before you can earn. The problem is also there: once the payer stops paying or the rules change, the returns shrink very quickly.

Don't just focus on "price fluctuations" when considering risks. The most common risk layer for LST is liquidity traps: when you want to sell, the pool is thin, and the discount widens; the re-staking layer is more like packaging the risk—if the contract/operation encounters issues or a penalty mechanism is triggered, you might not have time to react. I now prefer to hold a small amount with high conviction, accepting lower yields so I can sleep better.

By the way, hardware wallets are out of stock, yet many people still click on phishing links—it's really absurd... Don’t recklessly give signing permissions just for a little extra interest. First, treat wallet security as your "base salary"; otherwise, what you earn might just be tuition fees.