Polkadot & Kusama APR UI Update

in Kusama, Polkadot by Kosta Zherebtsov

Since the launch of Lido on Polkadot and on Kusama we've made updates to the validator choosing algorithm side and also seen some changes on the network side leading to staking APR changes.


Whilst doing our best to provide both an effective and decentralized approach to staking, there are some network and market conditions we need align with.


Lido On Kusama

While being a canary network, Kusama was very attractive for staking because of the higher APR in comparison with other POS networks — close to 25% back in the day.


What we may see now is that while overall network stake has grown and surpassed the ideal staked volume, it has also affected inflation leading to a fall, in line with the network tokenomics design.


What one may do now to check how the Lido on Kusama stake is distributed is to check kusama.lido.fi/validators.


Lido On Polkadot

While Polkadot's ideal total staked amount is much higher than Kusama's, its total stake percentage is now very close in value to that of Kusama, leading to more staking rewards on this network.


Here another part comes into play: Having Lido on Polkadot launched after Lido on Kusama, we had to adapt our model and algorithm leading us to now having  ~ 13.73% APR for the last month (equivalent to ~ 14.71% APY because of auto-compounding).


APR Calculation Approach

Considering the above we are shifting from APR projection in the UI to actual APR data calculated for the last month for it to be more representative, transparent and consistent.


In the tooltips near the APR values, you may now always find an actual network APY estimate according to its native tokenomics as described in the docs here and shown in native UI as well here.


The APR per month is calculated using rewards for the last 30 days.

  1. The arithmetic mean APR is calculated for each ledger:
  1. The final APR is calculated as the arithmetic mean of all avg_ledger{i}_apr:


More Yield

Making assets liquid also lets you bring them into work in different DeFi protocols. To make things easier we are now collecting all the utilization options available in one place for Kusama.