> For the complete documentation index, see [llms.txt](https://romeblockchain.gitbook.io/sceptre-liquid-staking-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://romeblockchain.gitbook.io/sceptre-liquid-staking-documentation/guides/rewards-in-sceptre.md).

# Rewards in Sceptre

## Rewards on the Flare network

There are 3 types of rewards on the Flare network

1. FlareDrops
2. Staking rewards (p-chain)
3. Delegation rewards (c-chain)

At this moment Sceptre uses FlareDrops and Staking rewards as it stakes on the p-chain to validator nodes. 

1. FlareDrops come in a 30 day cycle (<https://flare.network/flaredrop-guide/>) and are distributed right after we claim them during the non-staking period.

<figure><img src="/files/d6yqZMvPwo35wksg3uzx" alt=""><figcaption></figcaption></figure>

1. Staking rewards come in a 14-day cycle which is unrelated to the minimum staking period. The rewards are added as soon as we have been able to claim them.

Distribution of staking and delegation rewards will become more frequent as the Flare network moves to Staking Phase 3 (<https://flare.network/flare-staking-phase-2/>). Based on the current information the rewards will become claimable in a 3.5-day cycle (and Epoch) and at that time Sceptre will start to distribute the rewards in that same 3.5-day cycle.&#x20;

Once a certain amount of FLR has been staked with Sceptre it will become useful for Sceptre to start taking to the c-chain (Delegating to FTSO's). This will allow Sceptre to perform Yield Arbitrage over both chains optimizing the APR for Sceptre users.

3. Delegation rewards are based on holding wFLR (wrapped Flare) on the c-chain and delegating to FTSO nodes (<https://flare.network/ftso/>).&#x20;

## sFLR pool

The sFLR pool (or Sceptre pool) is where all the all the (w)FLR goes to be staked. The more (w)FLR is staked with Scpetre the higher the rewards. Rewards on Sceptre are represented by the exchange rate of sFLR vs FLR.&#x20;

The exchange rate is affected only by the Rewards that come into Sceptre. 90% of those rewards are deposited into the sFLR pool and 10% is the fee for the protocol (Sceptre). When this 90% of rewards is added to the pool no new sFLR is minted. Thus the amount of FLR in the pool grows compared to the amount of minted sFLR and the exchange rate of sFLR vs FLR changes making every existing sFLR worth more FLR from the pool.&#x20;

When sFLR is unstaked it is burned thus leaving the exchange rate as is.


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