Staking ETH pays a yield, and yield is magnetic. But a native staking return is not interest from thin air. It’s compensation for securing the network, and it comes bundled with lockup considerations, validator risk, and the reflexive fact that if everyone stakes, the rate per participant compresses.
Liquid staking tokens smoothed over the lockup problem and unlocked a whole DeFi economy on top. Convenient, yes. It also stacks smart-contract risk and concentration risk onto what people treat as a risk-free base rate. Nothing in crypto is risk-free, and the base rate least of all.
Think of staking yield as the price of doing a job, not a gift for holding. When the yield looks juicy relative to the risk nobody’s talking about, that gap usually closes the hard way. Respect it before the market makes you.
Not financial advice.
