So my world that I play with my friends and we are around day 400 and now I (I'm the server host) am also experiencing lag that my friends have been telling me about for a while. This mostly happens in combat when I'm running from something and they attack the air far behind me. Then I die and am teleported to the spot that they attacked implying that my character was actually far behind where lag prediction showed me. I know turning off lag prediction will fix this but DST on ps4 is unplayable without it. I believe this is caused by trash items like rot and hound teeth along with there being too many trees in the world. An idea I thought of is making a server action that reloads the world and deletes all unimportant easy to get that are laying on the ground and removes about half of the trees that are too close to one another so there is more space in-between each tree. Honestly i have no idea how hard that would be to implement or if that would even help because I've never made a game before but i just thought of it.
Plant a bunch of trees and throw a bunch of garbage across the world and start a hound wave while around a different mob like beefalo to get the full effect.