How is the Sceptre for Flare APY calculated?

As of writing this blog post, Sceptre currently boasts an attractive 12.23% APY for Flare deposits. While this yield has normalized since the FlareDrop distribution period, it remains the highest organic APY available for Flare deposits across the entire network. Our more observant users may have noticed that this figure fluctuates slightly, which begs the question: how is Sceptre's APY calculated?

The Annual Percentage Yield (APY) generally represents the total return earned on an interest-bearing account over a year, factoring in compounding - earning interest on previously earned interest, or in Sceptre's case, rewards on top of rewards. On Sceptre, the APY is an estimate of the annualized liquid staking rewards based on the current liquid staking delegations. This figure is dependent on the staking ratio of the Flare network and the performance of the underlying validators, which fluctuate over time and is reflected on the number you see on our app.

What’s added to the Sceptre pool, increasing the exchange rate and affecting the APY?

To support Sceptre's APY, we stake all the FLR the community stakes with us, plus:

1. Staking Rewards (after our 10% service fee)

2. Delegation Rewards (after our 10% service fee)

3. The 0.5% fee users pay when they use Instant Unstaking on Sceptre for Flare

Every time staking and delegation rewards are claimed, the sFLR:FLR exchange rate goes up. The 10% service fee all users pay for using Sceptre is directly discounted from the staking and delegation rewards, which means it doesn’t need to be deducted from the APY or exchange rate anymore.

How is Sceptre for Flare’s APY calculated?

Sceptre for Flare's APY calculation is transparent and can be viewed publicly in the General stats area of the app by checking the “Estimated annual percentage yield” info button.

Sceptre for Flare's APY formula is visible on the app

To calculate the APY, we:

1- Get the exchange rates of the most recent staking reward epoch (r2)

2- Get the exchange rate of ~14 days prior to the most recent staking reward epoch (rolling window) (r1)

3- Take in the calculation period

4- Calculate the growth (staking_growth) by dividing the most recent staking reward epoch by the previous’ epoch’s exchange rate (r2 / r1)

5- Calculate the APY using the following formula: APY = staking_growth ^ (365 days / 14 days) - 1

When applied to the current APY calculation, we get:

1- Start exchange rate: 1.801508 as of March 16th 2026

2- End exchange rate: 1.809501 as of March 30th 2026

3- Period: 14.2 days

4- Growth: 1.809501 / 1.801508 = 1.004436838

5- APY = 12.23%

The importance of a public APY formula

In a crypto protocol, especially in DeFi, the APY (Annual Percentage Yield) formula isn't just a marketing number; it’s a critical component of the trustless nature of the system.

Traditional banks tell you your interest rate, and you have to take their word for it. In crypto, the "code is law." A public formula allows you to look at the Smart Contract and verify that the yield being advertised is actually what the math dictates. It proves the protocol isn't just "making up" numbers to attract liquidity. A public formula turns a "promise" of returns into a mathematical certainty, which is the backbone of why people use DeFi over traditional systems.

We hope this article cleared any doubts you may have about Sceptre for Flare’s APY. If you still have any questions, please feel free to reach out to our team on X, Discord or Telegram and we’ll happily answer them.