0. Overview
Following this old post, we attempt to solve the problem in the Number Field $K= \mathbb Q(\sqrt 5)$, which reduces to solving a set of $5$ Thue equations. We then solve them via PARI/GP which gives us the full solutions $(x,y)\in \{(1,-1),(1,0)\}$. In the following, let $w=\sqrt 5$ and $\alpha = (w+1)/2$.
1. Properties of $K$
$K$ has class number $1$, hence it is a PID and has unique factorization. As $5\equiv 1 \pmod 4$, the ring of integers is $R = \mathbb Z[(w+1)/2] = \mathbb Z[\alpha]$. The fundamental unit is $\eta = (w+ 1)/2 = \alpha$ and roots of unity is $\pm 1$. We remark that $\eta^{-1} = (w-1)/2$, as
$$
\eta\eta^{-1} = \frac{w+1}{2}\frac{w-1}{2}=\frac{w^2-1}{4}=1
$$
2. Solving the original problem in $R$
We start by factorizing the original problem in $R$:
$$
\begin{align*}
(wy+\frac{w+1}{2})(wy + \frac{w-1}{2}) &= w^2y^2 + w(\frac{w+1}{2}+\frac{w-1}{2})y+\frac{w+1}{2}\frac{w-1}{2} \\
&= w^2 y + w^2 y + \frac{w^2-1}{4}\\
&= 5y^2 + 5y + 1 \\
&= x^5
\end{align*}
$$
Denote $A = wy + (w+1)/2$ and $B = wy + (w-1)/2$, noting that $A,B\in R$. Since we have
$$
A - B = 1,
$$
$(A)+(B)$ generates $R$ and we conclude that $A,B$ are coprime.
Let the unique factorization of $x$ into irreducibles be
$$
x = \pm \eta^k I_1^{e_1} I_2^{e_2} \cdots I_m^{e_m}
$$
(where $I_j$ are the irreducibles). Then
$$
AB = x^5 = \pm \eta^{5k} I_1^{5e_1} I_2^{5e_2} \cdots I_m^{5e_m}
$$
Since $A,B$ are coprime, each irreducible power divides exactly one of $A$ or $B$. By relabelling $\{I_j\}$, we may assume that exactly the first $s$ irreducibles divide $A$, therefore $A$ has the form
$$
A = \pm \eta^l I_1^{5e_1}I_2^{5e_2} \cdots I_s^{5e_s} = \pm \eta^l (a+b\alpha)^5,\;\;\;\;l,a,b\in\mathbb Z
$$
since product of irreducibles are in $R$ and hence of the form $a+b\alpha$. We can factor $-1$ and powers of $\eta^5$ into $(a+b\alpha)^5$, hence a simplified form would be
$$
A = \eta^l (a+b\alpha)^5,\;\;\; l,a,b\in\mathbb Z,\;\;\;\; 0\leq l\leq 4
$$
Remark: we can factor $\eta^{-5}$ into $(a+b\alpha)^5$ too since $\eta^{-1} = (w-1)/2$, which is why we can assume $0\leq l \leq 4$.
3. Solution via Thue equations
For our original problem to have a solution, there must be $y,l,a,b\in \mathbb Z$ (and $0\leq l\leq 4$) such that the equation below holds:
$$
\begin{align*}
wy + \frac{w+1}{2} &= A = \eta^l (a+b\alpha)^5 \\
\frac{1}{2} + (y+\frac{1}{2})w &= \left(\frac{w+1}{2}\right)^l \left(a + b\frac{w+1}{2}\right)^5 \\
\end{align*}
$$
For each $l$ in $[0,4]$, equating the rational constant gives us a degree $5$ Thue equation, which we can solve using computational tools (using PARI/GP in our case). For example, letting $l=0$ we obtain:
$$
\begin{align*}
\frac{1}{2} + (y+\frac{1}{2})w &= \left(
a^5 + \frac{5 a^4 b}{2} + 15 a^3 b^2+20 a^2 b^3 + \frac{35 a b^4}{2} + \frac{11 b^5}{2}
\right) \\
&+ w\left(
\frac{5 a^4 b}{2} + 5 a^3 b^2+10 a^2 b^3+ \frac{15 a b^4}{2}+ \frac{5 b^5}{2}
\right) \\
\implies 1 &= 2 a^5+5 a^4 b+30 a^3 b^2+40 a^2 b^3+35 a b^4+11 b^5\\
\end{align*}
$$
We solve this on the online PARI/GP calculator, via the command:
thue(thueinit(2*a^5 + 5*a^4 + 30*a^3 + 40*a^2 + 35*a + 11,1),1)
(The first '1' means to assume nothing.) This returns
%1 = []
which tells us that there are no solutions.
For the 4 remaining equations corresponding to $1\leq l\leq 4$, they are:
$$
\begin{align*}
l &= 1:& 1 &= a^5+15 a^4 b+40 a^3 b^2+70 a^2 b^3+55 a b^4+18 b^5 \\
l &= 2:& 1 &= 3 a^5+20 a^4 b+70 a^3 b^2+110 a^2 b^3+90 a b^4+29 b^5 \\
l &= 3: & 1 &= 4 a^5+35 a^4 b+110 a^3 b^2+180 a^2 b^3+145 a b^4+47 b^5 \\
l &= 4: & 1 &= 7 a^5+55 a^4 b+180 a^3 b^2+290 a^2 b^3+235 a b^4+76 b^5
\end{align*}
$$
For convenience, the corresponding PARI/GP commands are
thue(thueinit(a^5+15*a^4+40*a^3+70*a^2+55*a+18,1),1)
thue(thueinit(3*a^5+20*a^4+70*a^3+110*a^2+90*a+29,1),1)
thue(thueinit(4*a^5+35*a^4+110*a^3+180*a^2+145*a+47,1),1)
thue(thueinit(7*a^5+55*a^4+180*a^3+290*a^2+235*a+76,1),1)
PARI/GP tells us that the only solutions are $(a,b) = (1,0)$ for $l=1$ and $(a,b) = (1,-1)$ for $l=4$. Putting in these values, we get the values of $A$ as
$$
\begin{align*}
(l,a,b) &= (1,1,0) &\implies A &= \left(\frac{w+1}{2}\right)^1(1)^5 = \frac{1}{2} + \frac{w}{2} \\
(l,a,b) &= (4,1,-1) &\implies A &= \left(\frac{w+1}{2}\right)^4 \left(1 - \frac{w+1}{2}\right)^5 = \frac{1}{2} - \frac{w}{2}
\end{align*}
$$
Recalling that $A=(1/2)+(y+1/2)w$, this in turn gives $y= 0$ and $y=-1$ respectively. Putting $y =0$ and $y=-1$ into our original equation, we get $x^5=1$ for both and hence $x=1$. This concludes that the only solutions are
$$
(x,y) \in \{(1,-1),(1,0)\}
$$
Remark: Perhaps it may be possible to solve the Thue equations manually so that this proof does not rely on computational tools.
For genus 2, Falting's theorem says that there are only finitely many rational points, so same for integer points. However there are no known good ways of finding all of them.
– Yong Hao Ng Jan 17 '18 at 10:18Perhaps special methods for selected curves is required.
– Yong Hao Ng Jan 17 '18 at 10:47