👻Aave SRB

Learn how Aave staking rewards are calculated. AAVESRB formula covers Safety Module emissions, daily reward distribution, and staked AAVE token yield.

AAVESRB is a benchmark representing the annualized staking rate for the AAVE token.

AAVESRB is calculated and published by Staking Rewards via the AAVE Profile and Data API.

TL;DR: Aave staking rewards come from Safety Module emissions, where AAVE tokens are locked to secure the protocol. The reward rate equals daily emissions annualized over 365 days divided by total staked AAVE in the staking contract.

Single-sided Safety Module Staking

$$AAVESRB = dr * t_y/st$$

Formula key	Metric name	Description
dr	Daily Rewards	Emissions per Second from staking contract totaled for one day.
st	Staked Tokens	The total balance of locked AAVE in the staking contract.
$t_y$	Year Constant	365d

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Observation Period:

1. The AAVESRB is determined based on the latest generated block at the point of evaluation.

2. This data is then annualized for a comprehensive year-long projection.

Calculation

The calculation happens every 2 hours and is immediately published via Data API.

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AAVE Real Reward Rate (AAVESRB^R)

The real reward rate calculates the AAVESRB adjusted for inflation in the network.

$$AAVESRB^R = 1+AAVESRB/(1+i)-1$$

Formula key	Metric name	Description
i	Inflation Rate	The inflation is determined by the Emissions per Second and is aimed at about 770 AAVE per day (Jan 2024).

Inflation Rate Behaviour

The inflation is also subject to change with possible governance decisions.

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Data Sources:

• Ethereum Blockchain RPC Endpoints from Infura

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References:

• AAVE Whitepaper

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📚 Learn more about AAVE Staking

📊 Calculate your AAVE Staking Rewards

⚙️ Access historic AAVE Staking Data via API

Last updated on 05/23/2024