Yield - APY
Explore the potential yields you can earn from participating in Minipools.
Last updated
Explore the potential yields you can earn from participating in Minipools.
Last updated
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.
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 GGP
rewards, which are based on the inflationary supply of GGP
tokens. Rewards are calculated from the total effective GGP
staked, up to 150% of the minipool operator's AVAX
contribution, 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 operatorβs geographical location and setup.
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.
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 AVAX
worth of GGP
.
The GGP reward will be increased up to 1500 AVAX
worth of GGP
. Beyond that, your GGP
reward will not be increased.