$THOR Staking Reward + APY

    Since vTHOR and THOR Staking 2.0 was released in May, we’re interested in finding out more about how the community has embraced the staking rewards. Show the daily / weekly staking rewards and calculate the daily / weekly APR for $THOR stakers. How has it progressed since staking was introduced?

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    New Staking Rewards Breakdown

    $THOR v1 Staking Rewards came purely from emissions of the Community Incentives pool.

    The newly upgraded Staking 2.0 Rewards will include both Community Incentives emissions, and also 75% of ALL THORSwap fees.

    THORSwap has introduced a 0.3% Exchange Fee beginning the week of April 25th. This Exchange Fee applies to Swaps only, not adding/withdrawing from liquidity pools.

    From the total affiliate fee collected, 25% of revenues will go to THORSwap Treasury, which helps support the dozens of core contributors who continue to work diligently to build, maintain and improve THORSwap. The THORSwap Treasury will also be used for community-driven initiatives, infrastructure improvements, charity and more.

    Hence, the total rewards breakdown into two main sections :

    Contract address for Protocol Emissions :

    0x8f631816043c8e8cad0c4c602bfe7bff1b22b182

    Contract address for Exchange Affiliate Fee :

    0xa5f2211b9b8170f694421f2046281775e8468044

    In this dashboard, we'll include the rewards from both Protocol Emissions and Exchange Affiliate Fee.

    Daily $THOR Rewards

    The bar chart above showing the amount of $THOR token being bought back using both Affiliate Fee and Protocol Emissions.

    • The overall trend is not pretty consistent for the amount of $THOR token being bought back as rewards for $THOR v2 stakers.

    • The range of $THOR token amount being bought back is between 55k to 174k.

    • It seems to be in every 2 - 3 days time there will be a day with lower $THOR token amount being bought back as rewards.

    • Other than the particular day, the other days are having more than 120k $THOR token buybacks.

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    Weekly $THOR v2 Rewards

    • There is an increase in overall trend in terms of rewards.

    • The first week has over 526k $THOR token being bought back as rewards for the stakers.

    • Then subsequent 2 weeks has more than 700k $THOR token bought back with respective 851k and 753k.

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    Daily $THOR v2 APY

    • In general, the Daily APY gradually decrease over the time, and lately has been fluctuating between 100 to 200% APY per day.

    • On the first day of $THOR v2 staking launched, the APY has reached over 600% APY.

    • Second day with even higher percentage with over 700++% APY.

    • Afterwards, the APY just dropped down.

    The dropping of APY is not due to the reduction of rewards from both protocol emissions and affiliate fees. As we can observe from Total Rewards chart, the rewards accrue per day has been quite constant over the time shown above (First chart).

    The lower of APY is due to the increase of pool share in the volume of $THOR staked in v2 smart contract. With more $THOR token being staked, the rewards is being diluted.

    This phenomena is normal.

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    How the Rewards Work?

    First of all, staking $THOR for $vTHOR is quite similar to the $xSUSHI and $sSpell staking models.

    As per above mentioned, 75%of THORSwap exchange revenues, will be distributed to the $vTHOR staking pool as $THOR. The ratio of $vTHOR : $THOR in the staking pool starts off as a 1 : 1 ratio. The rewards will accrue as in daily auto-compounding leading to the ratio always above 1:1.

    Below Explanation is pluck from Thorchain Medium

    Protocol Example

    For easy math, let us assume there is only 100 $THOR staked in the staking pool at the original ratio of 1:1 (1 $vTHOR = 1 $THOR).

    If the protocol distributes 10 $THOR rewards into the $vTHOR staking pool, the new ratio becomes 1 : 1.1, as 100 $vTHOR can claim 110 $THOR.

    User Example

    Let’s say Chad stakes 10 $THOR, at the original ratio of 1:1 and thus Chad would receive 10 $vTHOR. As shown above, the protocol distributes 10 $THOR into the staking pool changing the ratio to 1 : 1.1. When Chad redeems his 10 $vTHOR, Chad now receives 11 $THOR (initial deposit of 10 $THOR + staking rewards of 1 $THOR).

    Alternatively, if Chad had staked his 10 $THOR when the ratio was 1 : 1.1, he would receive 9.09 $vTHOR. If he decides to redeem his 9.09 $vTHOR when the ratio is 1 : 1.3, he would then receive 11.8 $THOR.

    Weekly $THOR v2 APY

    • The first 3 weeks of $THOR v2 staking launched, the weekly APY range from 94% to over 110%.

    • The Weekly APY for 1st week and 3rd week is close to each other with a percentage around 95%.

    • While 2nd week higher with a percentage of 111% weekly APY.