Overview
U.S.-based digital asset data provider Lukka has joined forces with CoinDesk Indices to introduce the Composite Ether Staking Rate (CESR) into its platform. The CESR aims to capture the mean annualized staking yield garnered by Ethereum validators, encompassing consensus incentives and priority transaction fees. Financial institutions, asset managers, and analysts will be able to utilize CESR as a standard for assessing ether staking performance.
Key Points
- Lukka will now integrate the Composite Ether Staking Rate (CESR) into its offerings.
- The CESR captures the mean annualized staking rate earned by Ethereum validators.
- This new metric will aid financial institutions in measuring ether staking performance.
Quote from Alan Campbell: “Our collaboration with CoinFund on CESR delivers a critical benchmark for Ethereum staking, offering institutions a trusted and standardized rate.”
Quote from Dan Husher: “The deal illustrates a higher standard for institutional crypto data.”
Since transitioning from a proof-of-work to proof-of-stake consensus mechanism in September 2022, Ethereum staking has surged, with over $37 billion locked in liquid staking protocols. These protocols allow users to earn additional yields through liquid staking tokens (LSTs).
Quote from Andy Baehr: “Ethereum’s change to proof of stake transformed blockchain security from a commitment of computing power to a financial commitment. This makes the staking rate an integral part of the investment case for ETH.”
UPDATE (16:45 UTC, March 12): Added quote from Andy Baehr.
