Understand your crypto staking yields

In this article:

Overview

When you stake crypto assets at Wealthsimple, we show you an estimated Annual Percentage Rate (APR) or Annual Percentage Yield (APY) in your app. This is based on the most reliable data available to us. 

APR and APY are different. APY includes the effects of compounding interest (when your earnings also start earning interest), while APR doesn't. We get our staking APR and APY data from third-party vendors who support crypto asset staking at Wealthsimple.

The staking yields you see might not reflect your actual earnings at Wealthsimple. Instead, they reflect the general network yields estimated for all participants in the crypto network. 

All staking APR and APY figures presented by Wealthsimple are net of all fees. You can find these fees in our Crypto Fee Schedule. 

Note: As outlined in Wealthsimple’s Crypto Product Risk Disclosure, staking rewards are subject to various risks. The rates shown in your app are based on past performance, and we can't guarantee that historical rates will be the same as current or future earnings.

APR and APY figures by crypto asset

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.

To learn more, view Wealthsimple’s Ethereum Risk Statement.

Example: ETH yield calculation

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.

To learn more, view Wealthsimple’s Polkadot Risk Statement.

Example: DOT yield calculation

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.

To learn more, view Wealthsimple’s Solana Risk Statement.

Example: SOL yield calculation

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.

To learn more, view Wealthsimple’s Cardano Risk Statement.

Example: ADA yield calculation

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.

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