CoinDesk reported:
One of the biggest mistakes that rookie stakers make, says Lutsch, is to get so enamored with staking returns that they overlook the underlying project. “This is one of the core places where retail users lost a lot of money last year,” says Lutsch. The classic example is Terra, the failed stablecoin project. The project offered an alluring yield on USD, but “once you looked into it, you realize that it’s all based on the stability of the mechanism,” and that most people didn’t understand how the system worked, says Lutsch. Be suspicious of black boxes.