You're being paid 7.99% to absorb price risk. Only ~7.99% of it is real fees — and they stop covering impermanent loss if PAXG-USDC diverges more than the pair moves.
Real fee/staking yield: 7.99% · token emissions: 0% of the headline.
The real fees here (~7.99%) can beat holding if PAXG-USDC stays calm, but a sharp divergence flips that. It's a genuine short-volatility bet, not free income.
Source: DefiLlama. Verdict is a heuristic over public data, not financial advice.