RedStone Introduces Inaugural On-Chain Benchmark for Ethereum Staking Yields
RedStone, a provider of modular blockchain oracles, has unveiled the Composite Ether Staking Rate (CESR), marking the introduction of the first on-chain benchmark for Ethereum staking rewards. This announcement comes directly from the company.
Ethereum staking yields denote the incentives received by individuals who lock up (stake) their ETH tokens to support the security of the Ethereum network. RedStone’s CESR is aimed at standardizing the calculation of annualized staking yields across the Ethereum validator community.
The CESR is meticulously crafted to offer a dependable and transparent metric for developers, investors, and institutional entities looking to develop innovative Ethereum yield derivative products. Furthermore, this new benchmark will function as a reference point for settling derivative contracts, taking into account all validator rewards, deposits, withdrawals, and penalties. Users will gain a comprehensive understanding of the intricate dynamics within the Ethereum staking ecosystem.
RedStone has leveraged CESR data analysis to observe trends in staking yields over time. Their analysis has revealed a decrease in staking yields attributed to heightened participation levels and the transformative influence of liquid staking and restaking practices in the market.
The team anticipates that CESR will provide a platform for DeFi developers and institutions to pioneer new financial instruments such as loans, bonds, and derivatives based on Ethereum staking yields.
In conclusion, RedStone’s launch of the Composite Ether Staking Rate sets a significant milestone in the realm of Ethereum staking rewards, offering a standardized benchmark that is poised to empower stakeholders in the DeFi space to innovate and create novel financial products based on Ethereum staking yields.
