Reward System

Different protocols have different reward systems, which means that each unique strategy has its own APY. The APY of a strategy is calculated as the weighted arithmetic mean of all the protocols involved. The eventual rewards of depositing ETH could be calculated as follows:

RETH=(Rspi×wi)/100+(Rrpi×zi)/100+ARi,wherewi=100R_ETH=∑ (〖Rsp〗_i × w_i)/100+∑ (〖Rrp〗_i × z_i)/100 + ∑ 〖AR〗_i,where ∑ w_i=100
  • RETH represents the total eventual rewards of the strategy, i.e., on your ETH

  • Rspi represents the rewards given by each staking protocol involved

  • represents the distribution corresponding to Rspi

  • Rrpi represents the rewards given by each re-staking protocol involved

  • Zi represents the distribution corresponding to Rrpi

  • ∑ ARi represents the eventual additional rewards given by the protocols, e.g., EigenLayer points

The APY at a given point of time could be calculated in a similar fashion:

APYETH=(APYspi×wi)/100+(APYrpi×zi)/100,wherewi=100〖APY〗_ETH=∑ (〖APYsp〗_i × w_i)/100+∑ (〖APYrp〗_i × z_i)/100,where ∑ w_i=100
  • APYETH represents the APY for the strategy, i.e., on your ETH

  • APYspi represents the APY of each staking protocol involved

  • Wi represents the distribution corresponding to APYspi

  • APYrpi represents the APY of each re-staking protocol involved

  • Zi represents the distribution corresponding to APYrpi

Last updated