#WalletConnect The DeFi yield rate of the token WCT performs well in staking, but there are certain inflation risks. The following is a summary of key information:
1. WCT staking yield rate
- APY as high as 85%: The annualized yield rate (APY) for staking WCT was initially set at 85%
- But 50% comes from inflation issuance: About 50% of staking rewards are provided through token issuance, meaning that the high yield portion relies on the release of new tokens rather than actual protocol income. This model may lead to long-term inflation pressure, affecting token value.
2. Real yield rate issues
- After deducting inflation, it may be negative: Since WCT's current annual income is only $2 million, and staking rewards heavily rely on new token issuance, the actual yield rate (after accounting for inflation) may not have truly turned positive.
- Short-term speculation is stronger: High APY has attracted short-term stakers, but it has also formed a cycle of 'mining, withdrawing, and selling,' exacerbating market selling pressure.#wct
3. Comparison with other DeFi yields
- Stablecoin wealth management yield (around 5%): Compared to stablecoin lending or liquidity mining (such as 2.5%~8% annualized for USDT/USDC), WCT's staking yield seems higher, but the risk is also greater.
- Need to pay attention to protocol income implementation: If WCT can successfully implement the 'connection fee tiered' model (expected to launch in Q3), its staking yield may shift from pure inflation to partially supported by real income, thus improving the long-term yield structure.
So do not pursue superficial yields; long-term account yields will definitely affect token price.