Staking Return Difference

Hi Everyone,

What would cause a big difference in estimated epoch returns vs what the actual return is? I’m seeing that I’m never close to the estimated. The pool I’m delegating to is 98% saturated and 1% fee.

Ideas?

Thanks

Either your pool looses a lot of slots or your expectations are too high? :slight_smile:

If you expect an annual return of for example 5.2%, this about 0.07% per epoch. Does your actual return per epoch roughly fit this number?

Dear @OxenHouse

The way APY is calculated in general is this:
APY formula

Where:

  • r = period rate
  • n = number of compounding periods

For example, if you deposited $100 for one year at 5% interest and your deposit was compounded quarterly, at the end of the year you would have $105.10. If you had been paid simple interest, you would have had $105.

That’s not too dramatic. But if you left that $100 in the bank to continue compounding interest for four years, you would have $121.99. With simple interest, it would have been $120.

source: Annual Percentage Yield (APY) Definition

Here in Deadalus that means that your first reward will only have n=1 cycles throught the whole process. expect that small return to be added to your balance and in itself also receive that 1.07 factor the next time rewards are dealt.

Hope this clarifies some of your question.

Bas