# MSP Example

Consider the following tokens being accepted into a staking pool and their corresponding approximate yields:

<figure><img src="https://97359706-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVojmNpc2HxHoTSB3lLPZ%2Fuploads%2FuT7VJR77wQCZCQzTwiqo%2FStaking%20Pool.png?alt=media&#x26;token=1f2b369b-22be-4a26-b30e-d3e02cb6b9e3" alt=""><figcaption></figcaption></figure>

* ETH \~ 4% yield
* LSTs \~ 3.5% yield
* MATIC \~ 5.5% yield
* ARITH \~ 15% yield

For this scenario, assume the quantities deposited of each token are equal. Therefore, the average yield of the pool is 7 %.

Consider that 100 users deposited into this pool and each deposits only 1 token.\
Pool size: 100 tokens\
After 12 months, with a 7% APR, the pool will contain 107 tokens. Therefore, 7 new tokens are being generated.

As described earlier, if there are 100 participants, following a division ratio of 1:4 gives us 20 eHST and 80 sHST holders.

sHST holders are guaranteed a return of 6%. In this case, this implies that 80 sHST holders receive \~ 5 tokens, meaning each sHST holder receives 0.0625 tokens on their 1 token deposit.

Therefore, the effective return rate earned by each sHST holder after 12 months is 6.25%

eHST holders, on the other hand, receive the remaining yield. This implies that 20 eHST holders receive 2 tokens, meaning each eHST holder receives 0.1 tokens on their 1 token deposit.\
Therefore, the effective return rate earned by each eHST holder after 12 months is 10%

It should also be noted that eHST holders receive any excess yield stored in the LEP over 12 months.