The honest part: where LRTs can hurt you, and how to avoid the worst of it.
LRTs add several risks on top of staking: depeg (trading 5–10% below fair value in stress), slashing (an AVS operator misbehaves), smart-contract and bridge risk (the April 2026 Kelp LayerZero exploit drained ~$290M), and leverage looping, where liquidations cascade and deepen depegs. Treat LRTs as productive but fragile.
Isolated, per-LST design avoids pooling risk across assets.
Favor deep liquidity and isolated risk; avoid heavy looping; never deposit more than you can watch.