Yield - APY
Detailed information on the potential returns from participating in liquid staking.
Last updated
Detailed information on the potential returns from participating in liquid staking.
Last updated
Yield, or the return on investment from staking AVAX through GoGoPool, is an essential concept for users. Here's a quick summary of how GoGoPool generates yield and the key elements involved in yield calculation.
GoGoPool is proud to offer the highest yield on Avalanche due to several key advantages:
Exclusive MEV Yield: GoGoPool is the only Liquid Staking Token (LST) provider on Avalanche that captures Maximal Extractable Value (MEV) yield. This unique strategy significantly boosts the overall yield for ggAVAX holders.
Zero Fee Structure: We maintain a zero-fee policy, with no protocol fees and no delegation or hardware fees. This is possible because our Minipool operators, who contribute their own resources, manage the necessary hardware, thus eliminating additional costs for our users.
Higher Returns than Base Validators: Holding ggAVAX yields higher returns than operating a base validator independently. This is due to our combined yield sources (base validation yield and MEV) and our efficient use of pooled resources which maximize yield without the logistical and financial overhead of running individual validator hardware.
AVAX Staking: Users stake AVAX and receive ggAVAX in return.
Minipools Formation: Deposited AVAX backs Minipools by matching with funding from users who want to become validators, enabling validator operations to earn native validation yield on the Avalanche network.
Yield by Minipools: These Minipools participate in the network's validation process, securing the blockchain and earning rewards in native validation yield.
Yield by MEV Strategies: In addition to the native yield, GoGoPool implements Maximal Extractable Value (MEV) strategies without adding risk to the staked AVAX. These strategies are employed by validators under GoGoPool's custody, ensuring that any additional returns are securely generated on top of the standard validation rewards.
Yield by Delegation (Optional): Depending on the liquidity in the pool, a portion of the staked AVAX may be delegated to external validators. It's an adaptive strategy, employed based on the availability of excess AVAX in the liquidity pool, ensuring optimal yield generation.
Reward Distribution: All rewards earned—whether through Minipools' native validation, MEV strategies, or delegated AVAX— are distributed back to the deposit pool, increasing the value of ggAVAX tokens held by users.
Base Validation Yield: This is based on the network's consensus and validation work and is directly linked to the operational effectiveness of Minipools.
MEV Yield: Additional yield generated through good MEV operations, providing an extra layer of returns on top of the base validation yield.
Delegation Yield (Optional): Additional yield generated by delegating excess AVAX to other Avalanche validators to capture additional returns.
Net Yield: The combined yield from base validation, MEV strategies, and optional delegated AVAX, after accounting for any minimal fees or opportunity costs, represents the net return to ggAVAX holders.
Protocol Fee: GoGoPool does not impose any protocol-level fees on its users, ensuring that the returns on staked AVAX are maximized without any deductions for platform usage.
Delegation Fee: This is a fee that could be charged by external validators when a portion of the staked AVAX is delegated to them to earn additional yield.
Liquidity Fee: Liquidity fee represents an opportunity cost rather than a direct charge. It quantifies the potential yield foregone on AVAX that remains idle or is not actively participating in validation efforts.