That 2.5% is denominated in ETH. If ETH falls 20%, the staking reward does not make you whole. Earning yield is not the same as hedging price.
Staking pays new issuance and fees for securing the network. If you cannot explain where a return comes from, you cannot judge whether it will last.
Restaking and DeFi strategies can raise returns, but each added layer stacks another smart-contract risk. Higher yield is compensation for risk, not a free upgrade.
Treat any advertised APY as a claim to test. Understand the source, size positions to survive a protocol failure, and remember yield never erases price exposure.
Read More →