How ETH Rewards Calculates APR

ETH Rewards sees its mission as ensuring the utmost accuracy of ETH staking data that would satisfy any needs of any user.

This article explores the methodology behind our Annual Percentage Rate (APR) calculation, which combines accuracy with historical depth to provide users with all the information they need to make informed decisions.

Data Collection

Our APR calculation is based on the meticulous data collection regarding validator balance changes. By capturing comprehensive data daily, we ensure a rich historical context for our analysis, allowing users to gain insights based on market dynamics and a better understanding of current trends.

Precision in Calculation

We start by identifying the change in a validator's balance over consecutive days. This difference is then divided by the initial staking deposit of 32 ETH, which yields a daily percentage change. To project this figure onto an annual scale, we multiply the daily percentage change by 365, resulting in the APR. This approach ensures that our users receive a precise and accurate representation of their staking rewards over time.

Individual and Network Averages

Beyond calculating APR for individual validators, ETH Rewards also aggregates this data to compute average APRs for individual operators and the entire Ethereum network. This dual approach offers a comprehensive view of staking performance, providing insights into personal investment returns and the health of the broader Ethereum staking environment. By comparing these averages, users can gauge the effectiveness of their staking strategies relative to the network at large.

Final Remarks

The APR calculation methodology employed by ETH Rewards is designed with the dual goals of transparency and precision in mind. It is a detailed and accurate tool for evaluating staking performance that can empower users to make informed decisions on the go. Whether you're assessing individual validators or the network as a whole, ETH Rewards provides a reliable resource for understanding the potential returns on your Ethereum stakes.