💰Calculating Your Liquid Staking Returns

How are staking rewards calculated on the Quicksilver protocol?

When estimating the number of Assets you’ll receive after a certain period of liquid staking, only a few parameters are required:

1. D = Your initial deposit size (in Assets)

2. r₁ = The redemption rate at the moment you convert Assets to qAssets

3. r₂ = The redemption rate at the time you redeem your qAssets back into Assets

Your expected earnings (E) can be calculated as follows:

$$E = D \times \left( \frac{r_{2}}{r_{1}} - 1 \right)$$

This formula indicates that if the redemption rate r₂ is higher than r₁, you will receive more Assets than you originally deposited (plus any compounded returns).

Tracking the Redemption Rate

The current redemption rate for each onboarded chain is published here: https://lcd.quicksilver.zone/quicksilver/interchainstaking/v1/zones

Important Note on qAsset Balances

After you initially deposit Assets and receive qAssets (e.g., 10,000 qSTARS), your qAsset balance remains the same in your wallet. The value of those qAssets, however, increases over time due to accumulated staking rewards, which is reflected in the changing redemption rate rather than the token count itself.

$$E = D \times \left( \frac{r_{2}}{r_{1}} - 1 \right)$$