🐙Subsquid SRB

Subsquid Staking Rewards Benchmark (SQDSRB™) Methodology

SQDSRB is a benchmark representing the mean, annualized staking rate across all active Subsquid workers.

SQDSRB is calculated and published by Staking Rewards via the Subsquid Profile and Staking Data API.

SQD Staking Rewards Rate: SQDSRB

$$SQDSRB = rAPR/t_y * st * el$$

Formula key	Metric name	Description
rAPR	Target Reward Rate	The target reward rate. It is a dynamic rate that determines the annual rewards distributed to stakers based on the network's utilization and the total amount of staked tokens.
st	Staked Tokens	The total tokens staked including tokens bonded by workers and delegated by delegators.
el	Epoch Length	The length of the epoch in days.
$t_y$	Year Constant	365d

Slashing

• SQDSRB does not factor in the possibility of slashing occurrences.

• It's important to note that if validator entities face slashing, rewards will increase, as the slashed tokens are reallocated among validators.

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SQD Worker Staking Reward Rate: SQDSRB(v)

Staking Rewards calculates the SQDSRB for each worker based on their individual performance.

$$SQDSRB(v) = rMAX * dl * dt_1 * dt_2$$

Formula key	Metric name	Description
rMAX	Maximum Reward Rate	The maximum potential yield for the epoch.
dl	Liveness Factor	it is calculated as the percentage of the time the worker is self-reported online.
$dt_1$	Traffic Factor	Cobb-Douglas type discount factor.
$dt_2$	Tenure Factor	It is a long-range liveness factor incentivizing consistent liveness across the epochs.

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Observation Period:

• The SQDSRB is determined based on the latest generated epoch at the point of evaluation.

• 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

• SQDSRB excludes rewards accrued from on-chain fees.

• SQDSRB employs a 365-day convention for annualizing current slot times. This convention remains consistent and does not accommodate adjustments for leap years.

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SQD Real Reward Rate: SQDSRB^R

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

$$SQDSRB^R=1 + SQDSRB/(1+ir) -1$$

Formula key	Metric name	Description
ir	Inflation Rate	The annual provisions divided by the circulating supply.

Inflation Rate Behavior

• The inflation rate is fix for the initial 3-year bootstrapping phase. After this period, the reward cap decreases significantly until the community decides on a new inflation schedule through governance.

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Other Subsquid metrics calculated by Staking Rewards:

Metric	Description
Delegated Tokens	The number of SQD tokens delegated to workers.
Self Staked Tokens	The number of SQD 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 Subsquid Blockchain RPC Endpoints

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References:

• https://docs.sqd.dev/

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Last updated on 08/27/2024