Staking Yield APR/APY Overview

When staking crypto assets at Wealthsimple, an estimated Annual Percentage Rate (APR) or Annual Percentage Yield (APY) is presented to you in-app based on the most reliable data available to the platform. APR and APY are distinct from one another in that APY includes the effects of compounding interest, whereas APR does not. Learn more about APR and APY here.

Staking APR and APY data are sourced from third-party vendors supporting crypto asset staking at Wealthsimple. It should be noted that the staking yields presented may not reflect your actual earnings at Wealthsimple, but rather the general network yields estimated to be applicable to all crypto network participants. As outlined in Wealthsimple’s Crypto Product Risk Disclosure, staking rewards are subject to various risks. Rates presented in-app are retrospective in nature, and there is no guarantee that historic rates will represent current or future earnings.

Staking APR and APY figures presented by Wealthsimple are net of all fees, which are outlined in Wealthsimple’s Crypto Fee Schedule here. Note that staking fees differ for Core, Premium, and Generation clients. Please review the details below of the data being sourced to present APR and APY figures for each staking crypto asset at Wealthsimple:

Ethereum (ETH)

  • ETH staking yield data is an APR sourced from a third-party vendor.
  • Staking APR yield rates represent the highest Ethereum network yield rate from the previous week every Monday.
  • The Ethereum network yield rate does not reflect the actual yields earned by Wealthsimple’s ETH validators.
  • See Wealthsimple’s Ethereum Risk Statement here.

Example

If the highest network yield rate for Ethereum was 5% the previous week, the yield rate for the current week will subtract the 5% validator fee (5% - (5% of 5%) = 4.75%) and Wealthsimple’s 30% fee (4.75% - (30% of 4.75%) = 3.325%). The in-app ETH yield staking rate will be rounded and presented as “Up to 3.3% APR” in this example.

Polkadot (DOT)

  • DOT staking yield data is an APY sourced from a third-party vendor.
  • Staking APY yield rates represent the highest yield earned by Wealthsimple’s validators from the previous week every Monday.
  • See Wealthsimple’s Polkadot Risk Statement here.

Example

If the highest validator yield rate for Polkadot was 20% the previous week, the yield rate for the current week will subtract the 10% validator fee (20% - (10% of 20%)  = 18.0%) and Wealthsimple’s 30% fee (18.0% - (30% of 18.0%) = 12.6%). The in-app DOT yield staking rate will be rounded and presented as “Up to 12.6% APY” in this example.

Solana (SOL)

  • SOL staking yield data is an APY sourced from a third-party vendor.
  • Yield rates represent the general Solana network yield rate each Monday
  • The Solana network yield rate does not reflect the actual yields earned by Wealthsimple’s SOL validators.
  • See Wealthsimple’s Solana Risk Statement here.

Example

Each Monday, Wealthsimple will source Solana’s general network yield. If the rate on a given Monday is 7%, the yield rate presented will subtract the 10% validator fee (7% - (10% of 7%) = 6.3%) and Wealthsimple’s 30% fee (6.3% - (30% of 6.3%) = 4.41%). The in-app SOL yield staking rate will be rounded and presented as “Up to 4.4% APY” in this example.

Cardano (ADA)

  • ADA staking yield data is an APY sourced from a third-party vendor.
  • Yield rates represent the average general Cardano network yield rate over the previous quarter.
  • See Wealthsimple’s Cardano Risk Statement here.

Example

On a quarterly basis, Wealthsimple will source Cardano’s average general network yield for the past quarter. If the rate obtained is 4%, the yield rate presented will subtract the 5% validator fee (4% - (5% of 4%) = 3.8%) and Wealthsimple’s 30% fee (3.8% - (30% of 3.8%) = 2.66%). The in-app ADA yield staking rate will be rounded and presented as “Up to 2.7% APY” in this example.

Learn more about staking your crypto assets at Wealthsimple. 

Last Updated: November 6, 2023

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