Key takeaways
- RedStone presents Ether’s composite staking rate for Ethereum staking yields.
- The benchmark captures all relevant rewards for validators and accounts for deposits, withdrawals, and penalties, providing a holistic view of staking returns.
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RedStone, a provider of modular blockchain oracles, has launched the Composite Ether Staking Rate (CESR), the first on-chain benchmark for Ethereum staking yields, the company announced today.
Ethereum staking yields refer to the rewards earned by participants who lock up (stake) their ETH tokens to help secure the Ethereum network. With CESR, RedStone aims to standardize the measurement of annualized staking yields across the entire population of Ethereum validators.
The team said CESR is designed to provide a reliable and transparent measure for developers, market participants and institutional players interested in creating derivatives.
THE new The benchmark index provides a consistent daily snapshot of staking yields, which is crucial to understanding the current state of Ethereum staking market. It serves as a reliable reference for creating derivative contracts based on Ethereum staking yields, providing an overview of staking rewards, including consensus rewards, total priority transaction fees, and accounts for deposits, withdrawals, and discount events.
Additionally, CESR daily rates can be aggregated over different time periods, providing flexibility for analyzing trends and historical performance.
RedStone hopes CESR will empower DeFi developers and institutions to create new financial products such as on-chain interest rate swaps, staking interest rate derivatives, insurance products and yield curve products.
“The launch of CESR represents a significant step forward in the standardization and measurement of Ethereum staking yields. As staking and resttaking continue to evolve and introduce new complexities, CESR provides a trusted foundation for building innovative financial products and gaining deeper insights into the Ethereum ecosystem,” RedStone said.
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