Wormhole’s W Token Is Paying Out 999% a Week on Solana Protocol Kamino

Staking bridging application Wormhole’s newly released W token is making traders 999% a week as long as its capacity on Kamino, a decentralized finance (DeFi) platform on Solana, isn’t exceeded.

The return can be gained by pairing W with JitoSOL (JTO) and locking both tokens in a liquidity pool on Kamino. The rewards on offer are more than 3,300 W and 666 JTO a day, worth a cumulative $7,000 at current rates, plus a portion of the trading fees generated on the W and JitoSOL pool.

The pool can take on a maximum of $7.5 million, data shows, and had just under $5 million locked as of Thursday morning in Europe. The data shows that in the past 24 hours, it has captured $17,000 in fees from $6 million in trading volumes.

JitoSOL is a token that is issued when a user stakes Solana’s (SOL) tokens on Jito, a separate protocol also based on Solana. A liquidity pool can be thought of as a smart contract where two or more tokens are locked to facilitate trades between those specific assets on a decentralized exchange.

W, Wormhole's governance token, was released yesterday with a market capitalization of $3 billion. It was airdropped to thousands of users based on their prior activity on the bridging application.

Wormhole allows users to transfer tokens between different blockchains, such as Ethereum, Solana, Terra and others. The token was among the most anticipated this year because Wormhole remained one of the few major protocols that did not offer a token. The W price has dropped almost 30% in the past 24 hours, CoinGecko data shows. The CoinDesk 20 Index, a measure of the broader crypto market, has lost 1.24%.