🫒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.

LivepeerSRB=tr(sn/st)+frLivepeerSRB = tr * (sn/st) + fr
Formula key
Metric name
Description

tr

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.

LivepeerSRB(v)=LivepeerSRB(1cr)LivepeerSRB(v) = LivepeerSRB * (1-cr)
Formula key
Metric name
Description

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.

LivepeerSRBR=1+LivepeerSRB/(1+ir)1LivepeerSRB^R=1 + LivepeerSRB/(1+ir) -1
Formula key
Metric name
Description

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:

Metric
Description

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:


References:


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Last updated on 08/27/2024

Last updated