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4 min readLiquid Staking

Understanding Staking Rewards

Where PlunderSwap staking rewards come from, how they compound into pZIL, how the APR is measured, and what affects it.

By PlunderSwap Team

Understanding Staking Rewards

This article explains where PlunderSwap staking rewards come from, how they compound into pZIL, and how the APR on the staking page is measured.

How Staking Rewards Work

Source of Rewards

The Zilliqa 2.0 protocol pays rewards to validators for proposing and signing blocks. Each validator's share depends on its stake and on how reliably it takes part.

Distribution Mechanism

  1. The pool's validator earns rewards for securing the network
  2. Rewards are paid to the staking pool every hour
  3. Each reward raises the pZIL exchange rate
  4. The pool re-stakes rewards, so they earn rewards of their own

Compounding

PlunderSwap compounds rewards for you:

  • No claim transactions
  • No manual restaking
  • No gas spent managing your position

Because rewards are re-staked rather than paid out, your returns compound over time without you doing anything.

How the APR Is Measured

The staking page measures APR from how much the pZIL exchange rate grew over the last 7 days:

APR = (Price now / Price 7 days ago - 1) × (1 year / 7 days) × 100

The exchange rate is already net of commission, so this is what pZIL holders actually earned. It's a recent measurement, not a guarantee of future returns.

Factors Affecting Rewards

Total Network Stake

Protocol rewards are shared among all staked ZIL. The more ZIL staked across the network, the smaller each staker's share.

Validator Performance

The pool currently delegates to a single validator. If it misses blocks or goes offline, the pool earns fewer rewards.

Commission

The pool takes 8% of rewards as commission before they're added to the pZIL exchange rate.

Idle Rewards

Rewards between re-stakes still count towards the pZIL exchange rate, but they don't earn rewards of their own until they're re-staked.

Reward Distribution Timeline

  • Rewards are distributed every hour
  • The exchange rate updates when they arrive
  • Your pZIL's ZIL value on the staking page updates with it
  • No claiming needed

Accessing Rewards

To realize gains, unstake your pZIL. After the unbonding period of about 6 days, claim your ZIL from the staking page.

Fee Structure

  • Commission: 8% of rewards
  • No deposit fee: Staking only costs gas
  • No withdrawal fee: Unstaking and claiming only cost gas
  • No holding fee: Hold pZIL as long as you like

Risk Considerations

APR Variability

  • Rates change with network conditions and total stake
  • Returns are not guaranteed
  • The APR on the staking page reflects the last 7 days

Smart Contract Risk

Smart contracts can have bugs, and the staking contract is upgradeable by the PlunderSwap team.

Practical Tips

  • Don't stake money you might need within the unbonding period
  • Understand your local tax rules
  • Start with a small amount if you're new

Conclusion

PlunderSwap staking turns ZIL staking rewards into a steadily rising pZIL exchange rate, compounded for you with nothing to claim.

Start earning rewards today by visiting our staking platform.

Want to dive deeper? Check out How pZIL Works and the staking guide.