About 96% of this 3.55% APY is decaying token emissions. The real staking / lending yield is ~0.16%. It is single-asset, so there is no impermanent loss to drag you below holding.
Real fee/staking yield: 0.16% · token emissions: 96% of the headline.
No impermanent loss here, so you keep the same price exposure either way. The honest number is the ~0.16% of real yield — the rest is fading emissions, not income.
Source: DefiLlama. Verdict is a heuristic over public data, not financial advice.