⚗️APR y Rewards
About performance generation and our rate
APR calculation on the Ethereum network
How is APR calculated on the Ethereum network?
The APR generated by validators is dynamic and is not the same from one validator to another. However, if you take a validator's rewards over a long period of time, you should get a similar APR between validators.
How are rewards generated on the Ethereum network?
There are two types of rewards generated when creating an Ethereum validator (staking):
Consensus Layer Reward: This reward relates to the action of reaching consensus within the network. Every time a new block is proposed, at least 66.66% of validators must reach consensus regarding the entire chain. Yes, that happens every time a new block is added to the blockchain! Consensus layer rewards are basically given when proposing or validating blocks.
Execution Layer Reward: These rewards are tips given by users when executing a transaction. Users may tip a transaction because they want to ensure it is prioritized when posted to the ledger (blockchain) or simply because they feel happy that day. One way or another, when our node proposes a block, “tips” are given.
APR Calculation on Ethernodes
How is the APR calculated for the protocol?
To be fair and transparent with our clients, we perform a daily calculation of the rewards generated by Ethernodes validators and assign them to each deposit proportionally. Each profitability layer and protocol has its calculation complexity, but here we give you a high-level view of how it works:
Profitability on the client's deposit Ethernodes delivers 85% of the rewards obtained by the Ethrereum deposited by clients used to activate validators. This, regardless of whether it is a "vanilla" validator (simple staking) or a validator linked to a Liquid Staking protocol.
Liquid Staking Protocol with Collateral Ethernodes distributes, in a variable manner, the fees obtained by the volume received from the Liquid Staking protocols in validators partially created with volume deposited in Ethernodes. Thus, Ethernodes clients receive between 50% and 70% of the fees generated by the volume received from Liquid Staking protocols.
Collateral-free Liquid Staking Protocol Ethernodes distributes, in a variable manner, the fees obtained from the volume received from Liquid Staking protocols without the need to provide collateral. Thus, Ethernodes clients receive between 10% and 30% of the fees generated by the volume received from Liquid Staking protocols of this type.
Additional Token Incentive Ethernodes distributes, on a temporary and discretionary basis, packets of tokens linked to protocols with which it collaborates to its clients. These token packages aim to encourage the receipt of deposits and improve their profitability.
What is the criteria for updating the APR??
The protocol APR is updated daily, based on:
(total sum of Ethereum generated by each layer in 24h / total existing deposits in Ethernodes) * 365 * 100%
In the case of Airdrops, they are converted to their ETH value to integrate them into the "total sum of Ethereum generated by each layer"
What is the Ethernodes.io fee?
Ethernodes' fee on direct rewards generated by your deposits is 15%. This fee applies only to rewards generated directly from your deposited Ethereum.
The rest of the Revenue Share layers share part of the fees obtained with the clients. That is, no fee is applied, but rather the opposite.
The net fee of a client who deposits in Ethernodes can even be negative, understanding that the fee charged to the client for what is generated by his deposit (15%) is lower than what is shared with the client by the different layers of Revenue Share.
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