Essential Insights
- RedStone has launched the Composite Ether Staking Rate, an innovative benchmark for Ethereum staking returns.
- This benchmark accounts for all pertinent rewards for validators, as well as deposits, withdrawals, and slashing penalties, providing a comprehensive picture of staking returns.
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RedStone, known for its modular blockchain oracle solutions, has officially rolled out the Composite Ether Staking Rate (CESR), a pioneering on-chain benchmark for Ethereum staking yields, as reported by the company today.
Ethereum staking yields denote the rewards received by users who lock (stake) their ETH tokens to bolster the Ethereum network’s security. With CESR, RedStone seeks to standardize the annual measurement of staking yields among the Ethereum validator networks.
The organization indicated that CESR is crafted to deliver a dependable and transparent metric for developers, market participants, and institutional investors aiming to develop innovative Ethereum yield derivative offerings.
This new benchmark will also function as a settlement reference for derivative contracts. It encompasses all validator rewards, deposits, withdrawals, and slashing penalties, allowing users to gain a complete understanding of the Ethereum staking landscape’s true dynamics.
RedStone has examined CESR data to uncover trends in staking yields over the years. Their analysis revealed a decrease in staking yields attributed to rising participation rates, as well as the disruptive effects of liquid staking and restaking within the market.
The team anticipates that CESR will empower DeFi developers and enterprises to create additional financial products such as loans, bonds, and derivatives linked to Ethereum staking yields.
