How is the Sceptre for Partisia APY calculated?

As of writing this blog post, Sceptre for Partisia offers an attractive 24.33% APY on MPC deposits, which begs the question: how exactly does Sceptre calculate this APY?

The Annual Percentage Yield (APY) broadly represents the total return on an interest-bearing account over a year, taking into account the power of compounding, earning interest on previously earned rewards (or in Sceptre for Partisia's case, staking rewards).

At Sceptre, the APY you see is an estimate of the annualized liquid staking rewards. This figure is directly influenced by two key factors:

• The staking ratio of the Partisia network: The total amount of Partisia tokens actively being staked on the network.

• The performance of the underlying validators: The efficiency and effectiveness of the validators Sceptre stakes in.

Because both of these factors naturally fluctuate, the APY displayed in our app may be adjusted over time. We aim to provide a real-time reflection of the potential rewards based on these dynamic network conditions.

What drives Exchange Rate changes and how do they impact the APY?

Sceptre for Partisia's APY is supported by staking rewards earned via staking on validators on the Partisia Network. Every time staking rewards are claimed - which happens every week on Wednesday - the sMPC:MPC exchange rate goes up. 

Sceptre's 10% service fee is directly applied to all staking rewards, which means that it doesn’t impact the displayed APY or the exchange rate, simplifying your calculations and providing a clearer picture of your potential returns.

How is Sceptre for Partisia’s APY calculated?

Sceptre for Partisia'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.

To calculate the APY, we:

1. Get the most recent staking reward epoch's exchange rate (r2)

2. Get the exchange rate of the 30 days prior to the most recent staking reward epoch (rolling window) (r1)

3. Get 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 = staking_growth ^ (365 days / 14 days) - 1

When applied to the current APY calculation, we get:

1. 1.183, as of July 29th, 2026

2. 1.162, as June 30th, 2026

3. 365 days /30 days = 12,16667 days

4. 1.183/1.162= 1,018072

5. APY = 1,018072^12,16667 - 1 = 0,24347 (24,34%)

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