I just woke up and checked the group, and everyone is arguing again about whether the extreme funding rate is a reversal or just a bubble being squeezed further... I don’t really follow this stuff, as it’s easy for my mindset to get carried away.

Recently, I’ve been looking at LST/re-pledging. The profit basically comes down to two parts: one is the original rewards from staking; the other is using the same “security/credit” to provide additional services, with others subsidizing or sharing the profits. It sounds pretty good, but the risk mostly comes from here: adding another layer increases dependency, and issues like LST price deviations, redemption queues, problems with contracts/oracles/operators, or if the penalty mechanism on the re-pledging side actually triggers, it’s not just “earning a little less,” but possibly losing the principal entirely.

My current approach is pretty cautious: first figure out who is actually paying the returns, what the worst-case losses could be, and then decide how much to allocate; if I don’t understand it, I just ignore it and take it slow.