Livepeer SRB
Livepeer Staking Rewards Benchmark (Livepeer SRB™) Methodology
LivepeerSRB is a benchmark that represents the reward rate of staking the asset.
LivepeerSRB is calculated and published by Staking Rewards via the LivepeerProfile and Staking Data API.
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Total staking rewards
Total staking rewards to be paid out during the current Block
st
Staked Tokens
Sum of all the LPT staked by all the participants in the network.
sn
Self Staked
Amount of LPT Staked by the target user for the current Block
fr
Fee Reward
Amount of ETH to be paid during current Block
LivepeerSRB - with fee
To calculate the reward rate, we sum the distributed LPT tokens with the percentage of the fee. This fee percentage is paid in ETH. To determine the reward rate percentage, we take the amount paid in ETH, convert it to LPT, and add it to the previously received LPT.
Slashing
Livepeer enforces slashing to penalize nodes for failing verification, not invoking required verification, or not performing their proportional share of work. This ensures network integrity and discourages malicious behavior.
Livepeer relies on external protocols like Truebit and Swarm, which can introduce slashing risks if delays or failures occur. To mitigate this, participants can take on verification roles, reducing dependency on third-party systems.
A portion of slashed funds is rewarded to those who report violations, while the rest goes to the CommonPool. This pool can burn tokens or fund ecosystem development based on governance rules.
LivepeerSRB Validators Staking Reward Rate: LivepeerSRB(v)
Staking Rewards calculates the LivepeerSRB for each validator based on their individual performance and commission rate.
cr
Commission Rate
The percentage commission rate the validator has set as a delegation fee for all delegators
Observation Period:
The LivepeerSRB is determined based on the latest generated block at the point of evaluation, with each block corresponding to approximately 22 hours.
This data is then annualized for a comprehensive year-long projection.
Calculation
The calculation happens every 2 hours and is immediately published via Staking Data API.
Limitations
LivepeerSRB does not guarantee the specified reward rate for individual validators, as it is subject to various factors such as network conditions, validator performance, and adherence to protocol rules.
LivepeerSRB's annual projections are estimates and may fluctuate due to changes in network participation, Ethereum usage patterns, and evolving network dynamics, making long-term predictions inherently uncertain.
Livepeer Real Reward Rate: LivepeerSRB^R
The real reward rate calculates the LivepeerSRB adjusted for inflation in the network.
ir
Inflation Rate
The annual provisions divided by the circulating supply.
Inflation Rate Behavior
Livepeer’s inflation rate is designed to incentivize participation in the network. New tokens are issued at a rate called InflationRate per round, based on the total circulating supply. These tokens are distributed proportionally to all bonded participants, ensuring active users are protected from dilution.
The inflation rate adjusts dynamically to maintain a target ParticipationRate of staked LPT. If participation is low, the inflation rate increases to encourage more staking. Conversely, if too many tokens are bonded, the rate decreases to balance liquidity and network engagement.
This algorithmic adjustment creates an equilibrium between token holders' preference for liquidity and the need for network security. As a result, inflation naturally aligns incentives, ensuring a healthy and engaged staking ecosystem.
Other Livepeer metrics calculated by Staking Rewards:
Delegated Tokens
The number of LPT tokens delegated to workers.
Self Staked Tokens
The number of LPT tokens bonded by workers directly.
Staking Wallets
The total number of unique delegations on-chain. It doesn't distinguish based on unique delegator addresses.
Data Sources:
Staking Rewards from indexed Livepeer Blockchain RPC Endpoints
References:
Last updated on 08/27/2024Last updated