The future of yield on Sceptre for Flare

With FlareDrops ending soon, we've received many questions from users about what Sceptre for Flare's APY will look like after January 30th, 2026. As we've previously explained in how our APY is calculated, the FlareDrop represents the largest component of our yield calculation, so it's natural that many of you are wondering about the future of returns on Sceptre for Flare. Based on community feedback, we want to clarify the upcoming changes to Sceptre's APY for Flare over the next few months.

Our current APY

Sceptre for Flare's APY calculation is fully transparent and publicly available. It’s based on actual rewards that have come into the Sceptre for Flare pool and an estimation for future yield - not a guarantee.

You can view the Sceptre for Flare APY breakdown in the General stats section of the app by clicking the "Estimated annual percentage yield" info button. Here's how we calculate it:

1- Get the exchange rates (r1, r2) corresponding to the start and end period of a FlareDrop calculation.

2- Calculate time difference between those dates (Δt) in seconds

3- Get the number of seconds in a year (31.536.000 for 365 days)

4- Apply the formula: APY = (r2 - r1) * (seconds_per_year / Δt)

Simply put, it's based on the difference between two consecutive FlareDrops, which we then use to estimate annualized yield with compounding factored in. With FlareDrops ending, the calculation of the Annual Percentage Yield will change completely, and it’s a challenge to project what it will look like for the coming year.

How will the Sceptre for Flare APY be calculated in the future?

Changes to the Sceptre for Flare APY will roll out in 3 different phases:

Phase 1: Our current situation. Our APY will keep being a forward estimation based on the formula shared above. This estimation includes auto-compounding and is updated every 30 days following the FlareDrop.

Phase 2: In a second phase, expected to start this week, we'll transition to calculating APY using historical data from the current year, adjusting our methodology as the FlareDrop concludes, and new data becomes available. Like in phase 1, the APY will be updated every 30 days following the FlareDrop. By our estimations, the new APY will be around 41% based on current calculations.

Phase 3: The last phase will take place after the final FlareDrop, on January 30th 2026. After this, the only rewards contributing to the APY calculation will be staking and delegation rewards, which currently represent about a third of Sceptre for Flare's APY (about 13.5% of the APY). Since staking rewards accrue more frequently than FlareDrops, we'll adjust Sceptre's APY for Flare approximately every 14 days (or 4 epochs) - aligned with when new rewards are added to the pool. Users also need to take into account Sceptre's 10% service fee - for example, if the total yield after the FlareDrops are over is 13%, 11.7% would be the actual APY (13/10 = 1.3% ). Of course, compounding will make that percentage a bit higher and we'll adjust the APY accordingly.

Other changes to Sceptre for Flare

The end of FlareDrops also means the end of buy-in staking fees. These fees were introduced in August 2024 to prevent double-dipping on the FlareDrop - which has a negative effect on the APY of those already staked.

Starting January 30th 14:00 UTC, 2026, all users will be able to stake on Sceptre for Flare at any time without buy-in fees.

Yield going forward

FlareDrops represent a significant portion of Sceptre for Flare's APY, and while staking yield will inevitably be lower than current rates when they stop, remember that there are plenty of opportunities to generate yield on sFLR. As we've previously covered, you can extract additional yield by supplying sFLR on established partner protocols - Kinetic, SparkDEX, Enosys, BlazeSwap, Steer, Cyclo, XDFi and Flamix - as well as upcoming integrations like Spectra, which will soon support Flare and offer sFLR opportunities. We are also developing some new ways to generate additional yield on Sceptre, so stay tuned for new developments.

We want to close by saying a huge thank you for staking with Sceptre and being part of this journey. The end of FlareDrops will mark a significant shift for Sceptre, but our commitment remains unchanged: to be the best place to generate yield from your FLR.