diff --git a/src/components/nostr/user-menu.tsx b/src/components/nostr/user-menu.tsx
index c40ee55..dbd724d 100644
--- a/src/components/nostr/user-menu.tsx
+++ b/src/components/nostr/user-menu.tsx
@@ -118,18 +118,12 @@ export default function UserMenu() {
     return sats.toString();
   }
 
-  // Get wallet service profile for display name, using wallet relays as hints
-  const walletServiceProfile = useProfile(
-    nwcConnection?.service,
-    nwcConnection?.relays,
-  );
-
-  // Use wallet hook for real-time balance and methods
+  // Use wallet hook for real-time balance and connection status
   const {
     disconnect: disconnectWallet,
     refreshBalance,
     balance,
-    wallet,
+    connectionStatus,
   } = useWallet();
 
   function openProfile() {
@@ -185,26 +179,6 @@ export default function UserMenu() {
     }
   }
 
-  function getWalletName(): string {
-    if (!nwcConnection) return "";
-    // Use service pubkey profile name, fallback to alias, then pubkey slice
-    return (
-      getDisplayName(nwcConnection.service, walletServiceProfile) ||
-      nwcConnection.info?.alias ||
-      nwcConnection.service.slice(0, 8)
-    );
-  }
-
-  function openWalletServiceProfile() {
-    if (!nwcConnection?.service) return;
-    addWindow(
-      "profile",
-      { pubkey: nwcConnection.service },
-      `Profile ${nwcConnection.service.slice(0, 8)}...`,
-    );
-    setShowWalletInfo(false);
-  }
-
   return (
     <>
       <SettingsDialog open={showSettings} onOpenChange={setShowSettings} />
@@ -262,28 +236,23 @@ export default function UserMenu() {
                 </div>
               )}
 
-              {/* Wallet Name */}
-              <div className="flex items-center justify-between">
-                <span className="text-sm text-muted-foreground">Wallet:</span>
-                <button
-                  onClick={openWalletServiceProfile}
-                  className="text-sm font-medium hover:underline cursor-crosshair text-primary"
-                >
-                  {getWalletName()}
-                </button>
-              </div>
-
               {/* Connection Status */}
               <div className="flex items-center justify-between">
                 <span className="text-sm text-muted-foreground">Status:</span>
                 <div className="flex items-center gap-2">
                   <span
                     className={`size-2 rounded-full ${
-                      wallet ? "bg-green-500" : "bg-red-500"
+                      connectionStatus === "connected"
+                        ? "bg-green-500"
+                        : connectionStatus === "connecting"
+                          ? "bg-yellow-500 animate-pulse"
+                          : connectionStatus === "error"
+                            ? "bg-red-500"
+                            : "bg-gray-500"
                     }`}
                   />
-                  <span className="text-sm font-medium">
-                    {wallet ? "Connected" : "Disconnected"}
+                  <span className="text-sm font-medium capitalize">
+                    {connectionStatus}
                   </span>
                 </div>
               </div>
@@ -409,16 +378,17 @@ export default function UserMenu() {
                   </span>
                 )}
               </div>
-              <div className="flex items-center gap-1.5">
-                <span
-                  className={`size-1.5 rounded-full ${
-                    wallet ? "bg-green-500" : "bg-red-500"
-                  }`}
-                />
-                <span className="text-xs text-muted-foreground">
-                  {getWalletName()}
-                </span>
-              </div>
+              <span
+                className={`size-1.5 rounded-full ${
+                  connectionStatus === "connected"
+                    ? "bg-green-500"
+                    : connectionStatus === "connecting"
+                      ? "bg-yellow-500 animate-pulse"
+                      : connectionStatus === "error"
+                        ? "bg-red-500"
+                        : "bg-gray-500"
+                }`}
+              />
             </DropdownMenuItem>
           ) : (
             <DropdownMenuItem
diff --git a/src/hooks/useWallet.ts b/src/hooks/useWallet.ts
index 1a9a167..0f5fe99 100644
--- a/src/hooks/useWallet.ts
+++ b/src/hooks/useWallet.ts
@@ -26,6 +26,7 @@
 import { useEffect, useMemo, useRef } from "react";
 import { use$ } from "applesauce-react/hooks";
 import { useGrimoire } from "@/core/state";
+import type { WalletSupport } from "applesauce-wallet-connect/helpers";
 import {
   wallet$,
   restoreWallet,
@@ -53,8 +54,11 @@ export function useWallet() {
   const lastError = use$(lastError$);
   const transactionsState = use$(transactionsState$);
 
-  // Wallet support from library's support$ observable (cached)
-  const support = use$(() => wallet?.support$, [wallet]);
+  // Wallet support from library's support$ observable (cached by library for 60s)
+  const support: WalletSupport | null | undefined = use$(
+    () => wallet?.support$,
+    [wallet],
+  );
 
   // Wallet methods - combines reactive support$ with cached info fallback
   // The support$ waits for kind 13194 events which some wallets don't publish
@@ -63,6 +67,8 @@ export function useWallet() {
   }, [support?.methods, state.nwcConnection?.info?.methods]);
 
   // Restore wallet on mount if connection exists
+  // Note: Not awaited intentionally - wallet is available synchronously from wallet$
+  // before validation completes. Any async errors are handled within restoreWallet.
   useEffect(() => {
     if (nwcConnection && !wallet && !restoreAttemptedRef.current) {
       restoreAttemptedRef.current = true;
diff --git a/src/services/nwc.ts b/src/services/nwc.ts
index 0d6f195..386a552 100644
--- a/src/services/nwc.ts
+++ b/src/services/nwc.ts
@@ -25,6 +25,7 @@ WalletConnect.pool = pool;
 
 // Internal state
 let notificationSubscription: Subscription | null = null;
+let notificationRetryTimeout: ReturnType<typeof setTimeout> | null = null;
 
 /**
  * Connection status for the NWC wallet
@@ -75,9 +76,13 @@ function hexToBytes(hex: string): Uint8Array {
  * Notifications trigger balance refresh for real-time updates.
  */
 function subscribeToNotifications(wallet: WalletConnect) {
-  // Clean up existing subscription
+  // Clean up existing subscription and pending retry
   notificationSubscription?.unsubscribe();
   notificationSubscription = null;
+  if (notificationRetryTimeout) {
+    clearTimeout(notificationRetryTimeout);
+    notificationRetryTimeout = null;
+  }
 
   let retryCount = 0;
   const maxRetries = 5;
@@ -109,7 +114,7 @@ function subscribeToNotifications(wallet: WalletConnect) {
           const delay = baseDelay * Math.pow(2, retryCount);
           retryCount++;
           connectionStatus$.next("connecting");
-          setTimeout(subscribe, delay);
+          notificationRetryTimeout = setTimeout(subscribe, delay);
         } else {
           connectionStatus$.next("error");
           lastError$.next(
@@ -124,7 +129,7 @@ function subscribeToNotifications(wallet: WalletConnect) {
         if (wallet$.value && retryCount < maxRetries) {
           const delay = baseDelay * Math.pow(2, retryCount);
           retryCount++;
-          setTimeout(subscribe, delay);
+          notificationRetryTimeout = setTimeout(subscribe, delay);
         }
       },
     });
@@ -209,8 +214,13 @@ export async function restoreWallet(
  * Disconnects and clears the wallet.
  */
 export function clearWallet(): void {
+  // Clean up subscription and pending retry
   notificationSubscription?.unsubscribe();
   notificationSubscription = null;
+  if (notificationRetryTimeout) {
+    clearTimeout(notificationRetryTimeout);
+    notificationRetryTimeout = null;
+  }
 
   wallet$.next(null);
   balance$.next(undefined);
@@ -221,7 +231,12 @@ export function clearWallet(): void {
 
 /**
  * Refreshes the balance from the wallet.
- * Includes retry logic for reliability.
+ * Includes retry logic with exponential backoff for reliability.
+ *
+ * Note: If we're already connected and a balance fetch fails after retries,
+ * we don't set error state. This prevents UI flapping - the notification
+ * subscription is the primary health indicator. A transient balance fetch
+ * failure shouldn't mark an otherwise working connection as errored.
  */
 export async function refreshBalance(): Promise<number | undefined> {
   const wallet = wallet$.value;
@@ -253,6 +268,7 @@ export async function refreshBalance(): Promise<number | undefined> {
           setTimeout(r, baseDelay * Math.pow(2, attempt)),
         );
       } else if (connectionStatus$.value !== "connected") {
+        // Only set error state if not already connected (e.g., during initial validation)
         connectionStatus$.next("error");
         lastError$.next(
           error instanceof Error ? error : new Error("Failed to get balance"),