In Q4, WOO X shifted its staking from an inflationary emissions model to a sustainable onchain solution. It began leveraging WOO Stake - a smart contract-based staking system that collects fees from onchain swaps and shares yield with WOO stakers in a decentralized and transparent manner.
With onchain staking, the yield is determined by the amount of fees collected from onchain swaps. During periods of volatility, this tends to be higher, whereas when the markets are relatively quieter there are fewer fees collected and shared. As WOOFi market share grows, the amount of volume can also increase.
Another variable affecting the APR of staking is the price of WOO itself. Since fees are collected in USDC, the amount of WOO the protocol can buy back and share is also a function of the market price of WOO. As WOO increases in price, more USDC must be accumulated each week to match the dollar amount of WOO staked. As WOO decreases in price, staking APRs tend to increase.
Finally, keep an eye on the overall amount staked. As more of the WOO supply gets locked up, yield is shared among more users, which could create fluctuations in the APR.