💸Yield - APY
Explore the potential yields you can earn from participating in Minipools.
Minipools offer a simplified and profitable approach to participating in network validation. This page details the types of yields generated by Minipools and the benefits of operating a Minipool compared to running a standard validator on the Avalanche network.
Yields for Minipool Operators
Minipools enhance yield opportunities through the following ways:
Native Validator Yield: As each minipool is a validator on the Avalanche network, minipool operators earn yields from the validating network, similar to standard validators.
GGP Staking Reward: Minipool operators benefit from
GGPrewards, which are based on the inflationary supply ofGGPtokens. Rewards are calculated from the total effectiveGGPstaked, up to 150% of the minipool operator'sAVAXcontribution, enhancing yield potentials.Subnet Incentives: Additionally, Minipools may attract incentives from subnets that require decentralized and reliable validation services, adding another layer of earnings.
The APY calculations for Minipools do not include hardware costs, which can vary based on the node operator’s geographical location and setup.
GGP Reward Calculation
Rewards are calculated proportionally based on your staked GGP up to a maximum of 150% of your AVAX contribution's value. Staking beyond 150% will not increase your eligible rewards. The amount of GGP reward is determined based on its share of the total effective GGP staked within the cycle.
Detailed Example
For a Minipool with a total of 2000 AVAX (a combination of 1000 AVAX from the minipool operator and 1000 AVAX from the liquid staking pool):
You must stake at least 100
AVAXworth ofGGP.The GGP reward will be increased up to 1500
AVAXworth ofGGP. Beyond that, yourGGPreward will not be increased.
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