Abstract: In the process of national power market integration, the current time-of-use marginal pricing mechanism of the spot market is mostly based on marginal production costs. However, the core loss of electrochemical energy storage stems from cycle-induced lifespan degradation, making existing market mechanisms unable to fully adapt to its operational cost characteristics. Against this background, a multi-stage rolling optimization clearing model considering dynamic capacity bidding of independent energy storage for frequency regulation is proposed under the joint market of electricity energy and frequency regulation auxiliary services. First, the optimal charge-discharge depth boundary for energy storage frequency regulation is calculated via the equivalent full cycle life decay model, and a dynamic declaration mechanism for the frequency regulation market is designed. Then, a multi-stage rolling optimization clearing framework considering time sequence connection of the electricity energy-frequency regulation joint market is proposed. The framework first conducts pre-clearing in the electricity energy market alongside unit generation scheduling to quantify the opportunity cost of frequency regulation resources and define the dynamic capacity declaration limits. Frequency regulation quotations from all participants are dynamically revised based on comprehensive regulation performance, and market clearing is implemented at the optimal combined price. Finally, the winning frequency regulation bids are converted into unit output constraints to carry out real-time rolling clearing of the joint market. The case study verification results show that under typical scenarios, the proposed method can reduce the clearing cost of the frequency regulation market by 7.86%. Regulated by both price signals and performance constraints, the approach incentivizes high-quality frequency regulation resources and achieves optimal allocation of regulation capacity.