I've come across quite a few discussions about Walrus Protocol recently, and the 30%+ annualized returns are indeed very tempting. I also participated, but I want to be honest with those interested in trying—behind the high yields are some easily overlooked pitfalls.

I made the most common mistake from the start. Seeing the concept of stablecoin mining, I thought it was very simple and directly投入 USDT. As a result, I was confused on the first day— the annualized yield is definitely not a fixed 30%. During market boom times, it can reach 40%, but once the market cools down, it immediately drops to 15% or even lower. That kind of psychological gap can really make you feel like you've been cut.

Later, I realized that Walrus's returns come from two sources: transaction fee sharing and $WAL token rewards. When the market is active and trading volume is high, you can earn more in fees; conversely, less active markets mean less. This means it’s not a lazy “deposit and earn interest” game, but closely tied to market enthusiasm.

My second lesson is going all-in on a single pool. After reading experiences from veteran players, I realized that different pools have completely different risk and return profiles. Some pools offer generous $WAL incentives but are highly volatile; others are more stable but yield modest returns. You must allocate funds according to your risk tolerance and avoid putting everything in one basket.

Here are some painful but helpful tips for beginners wanting to dip their toes in: use idle funds that you won’t need in the short term. Never throw in money you might need soon. Second, spend time learning rather than just looking at the “annualized” number. Dive into the pool details, understand the reward mechanisms, lock-up periods, slippage costs, and other details to make informed decisions. Lastly, regularly review your allocations and don’t just set and forget.