How to Calculate Weekly Rewards
The calculation of weekly reward interest is a source of confusion for many Celsius users. We’re here to help!
Celsius posts weekly reward rates in Average Percentage Yield (APY). They use weekly compounding in their calculation as reward interest is paid out weekly and therefore compounded weekly.
However, when you’re taking a ‘snapshot’ of your weekly earnings, you can’t use APY. Instead, Celsius users must use the Average Percentage Rate (APR) in order to calculate their exact weekly rewards.
Calculating your Celsius in-kind weekly rewards:
Assuming that you’ve held your crypto assets in your wallet during the entire ‘Reward Accrual Period‘, here are the steps for calculating your weekly reward interest in-kind:
- Find your starting balance for an individual crypto asset
- Determine the weekly reward rate in APR (not posted APY)
- Use this calculation:
In-Kind Reward Interest = (Starting Balance * APR Rate) / 52 weeks
For example: if you have 100 MATIC earning in-kind at 10.00% APR, the calculation is 100 * 10.00% / 52 weeks = 0.1923076923076923 MATIC. The reward interest gets added to your original balance for the following weeks’ calculation (100 + 0.1923076923076923 MATIC).
Calculating your Celsius in-CEL weekly rewards:
Assuming that you’ve held your crypto assets in your wallet during the entire ‘Reward Accrual Period‘ and that you are eligible to earn in-CEL, here are the steps for calculating your weekly reward interest in-CEL:
- Find your starting balance for your individual crypto asset
- Determine your Loyalty Tier and the corresponding weekly reward rate in APR (not posted APY).
- Determine the snapshot price of your crypto asset (estimate using CoinMarketCap or CoinGecko)
- Determine the snapshot price of the CEL token (estimate using CoinMarketCap or CoinGecko)
- Use the 2 following calculations:
Step 1: In-Kind Reward Interest = (Starting Balance * APR Rate for CEL Loyalty Tier) / 52 weeks
Step 2: In-CEL Reward Interest = In-Kind Reward Interest (above) * (Asset Price / CEL Token Price)
For example: if you have 100 MATIC earning in-CEL and you have Platinum Loyalty, your reward rate is 12.50% APR. If MATIC is priced at $0.88 USD and CEL is $5.50 USD at the snapshot, then the calculations are:
Step 1: 100 * 12.50% / 52 weeks = 0.2403846153846154 MATIC.
Step 2: 0.2403846153846154 MATIC * (0.88 / 5.50) = 0.0384615384615385 CEL
Your reward interest for your 100 MATIC will be approximately 0.03846 CEL. Even if you keep 100 MATIC consistently in your Celsius wallet, your total CEL weekly rewards will be different each week. This is because both the MATIC and CEL prices are variable and will change from week-to-week.