Historical Yield
Historical SOL staking yield and funding rate on perpetual contracts is significant throughout market cycles.
Last updated
Historical SOL staking yield and funding rate on perpetual contracts is significant throughout market cycles.
Last updated
Solana's annual inflation rate is currently 5.266% and will decrease by 15% every epoch year (approximately 180 epochs). As detailed in the Yield Explanation section, lower inflation results in reduced staking rewards for validators. However, this reduction is balanced by transaction fees: 50% of each transaction fee is burned, while the remaining 50% is awarded to the validator who processed the transaction as a 'block reward'. Over time, the increase in transaction fee volume compensates validators for the decline in staking rewards.
Historically, Solana staking yield hovered around 7-8% in recent years due to the stable number of staked tokens and the chain's wide adoption leads to high total fees, offsetting the decrease in inflation rate. As the number of projects on Solana continues to rise and the chain adoption is widespread, we have little doubt about the future staking Solana's future staking yield.
The long position of USS/eUSS holds jitoSOL, which earns higher yield than the base SOL staking yield by combing staking yield with MEV rewards.
Beside yield earned on long positions, eUSS tokens also earn funding fees from SOL perpetual contract short positions. The short positions usually generate positive funding fees when SOL price increases because the perpetual contract long side pays the short side. In the long run, funding rate is usually positive-biased and mean-reverting. This means, despite short-term fluctuation, funding fees are usually positive in the long run. The monthly funding rate in the last 3 years:
Funding Rate has been largely positive, except for a large dip due to market meltdown in November 2022. However, in the longer term of more than a few months, funding rate reverted to positive. After the November 2022 dip, monthly funding fee reverted back to positive in February 2023, only 4 months later. Statistics show funding rate is very positive-biased. In the last 3 years, funding rate only turns negative on approximately 15% of trading days, and the median funding rate is 0.035%/day.
For more specific information on how USS and eUSS would have performed historically, please refer to section.
