Wormhole, a bridge application for token staking, is offering a lucrative opportunity for investors looking to stake Solana-based tokens. By staking in Kamino’s liquidity pool, users can pair Wormhole’s new W tokens with JitoSOL, resulting in weekly returns that have surpassed 999%. Beneficiaries of this arrangement are receiving daily rewards of over 3,300 W tokens and 666 JTOs, which equate to a staggering $7,000 based on the current market rates. This is in addition to earning from a slice of the transaction fees accrued in the pool.
High-Yield Staking Mechanism
Investors are flocking to the DeFi platform Kamino, where pairing W tokens with JitoSOL and staking them in a liquidity pool can lead to significant gains. The current setup has a capacity limit of $7.5 million, and at present, almost $5 million worth of assets are staked. The daily transaction volume recently hit $6 million, generating $17,000 in fees, which are partly shared with liquidity providers.
JitoSOL tokens are obtained through staking SOL tokens on Jito, a platform operating on the Solana blockchain. These liquidity pools, essentially smart contracts, enable seamless trading between the paired tokens by providing the necessary liquidity on decentralized exchanges.
Market Dynamics of Wormhole’s W Token
Wormhole’s governance token, W, launched with a $3 billion market valuation on April 3rd. It was distributed via an Airdrop to users who had interacted with the bridge protocol in the past. Wormhole’s technology allows for cross-chain token transfers across multiple blockchains, including Ethereum, Solana, and Terra. Despite the initial excitement, W’s price has seen a 30% decline post-launch, as tracked by CoinGecko.
Points to take into account
- Wormhole’s W token and JitoSOL can be staked on Kamino for weekly returns of over 999%.
- The liquidity pool’s capacity is $7.5 million, with close to $5 million currently staked.
- W tokens and JitoSOL must be paired and locked in to earn from transaction fees and token rewards.
- Since its release, the W token’s market value has dropped by approximately 30%.
This financial avenue offers a potential high-yield return for crypto investors, but as with all investments, especially in the volatile crypto market, it is crucial to assess the risks and perform due diligence before engaging in such staking opportunities.