Calculating-returns

The theory behind…

Calculating Expected Returns.

Let’s have a look how expected returns on The Graph Network are calculated in theory. You can skip right ahead if you want to see the reward calculation in practice.

Factors that determine delegation return.

Proportion of the delegation pool

Delegation rewards are shared evenly, proportionally to a Delegators share of the delegation pool.

Quality of indexed subgraphs

Smart Indexers may outperform their competitors by choosing subgraphs with a higher query fee potential.

Efficiency at claiming fee rebates

If an indexer is highly proficient at claiming query fee rebates, they can receive higher returns

Delegation capacity

If an indexer is overdelegated (delegation ratio > 16), delegation rewards will be diluted.

Indexer proficiency

Active Indexers that know the ins and outs of the protocol may be able to perform significantly better

Parameter changes

Indexers who repeatedly switch their reward and query fee cut influence the return of their Delegators

Formulas.

Calculating Indexer Rewards

If you want to calculate your expected indexing rewards by hand, you can use this formula:

Your GRT delegated to Indexer

Total GRT delegated to Indexer

Total indexing rewards of Indexer

100% – Rewards cut percentage

Calculating Query Fees

The formula for calculating expected query fees is as follows:

Your GRT delegated to Indexer

Total GRT delegated to Indexer

Total query fees of Indexer

100% – Fee cut percentage

Reward calculation in practice

Reward Calculators.

There’s no need for you to calculate expected rewards per hand. Simply use one of the available calculators.

Reward-Calculator

Graphscan.io.

An easy to use calculator is provided by Graphscan.io. Simply enter your planned delegation, click calculate and see an estimate of your APY and your estimate daily returns in GRT for each indexer.

Calculator

Simplified reward calculator.

Proudly brought to you by The Graph Academy

We’ve created an easy-to-use calculator that shows you how much GRT you can earn per day with each indexer. The spreadsheet also has a functionality that shows you after how many days of delegating you break even.

Calculate your rewards

Enter the amount of GRT you wish to delegate and head over to the sheet called Reward Calculator and you will see your potential delegation rewards for each indexer.

Indexer reward comparison

Summary

Excellent! You have now gained a thorough understanding on how to calculate expected returns as a delegator on The Graph Network. Use the available calculators to your advantage so that you can better compare the profitability of Indexers with each other.

Delegator Resources

Discover our selection of tools for Delegators that provide you everything you need to succeed as a Delegator in The Graph Network: Delegator Resources.

Go Back

Delegator Knowledge Hub

Up next

Delegating to an Indexer