RedStone, a modular blockchain oracle provider, has launched the Composite Ether Staking Rate (CESR), the first on-chain benchmark for Ethereum staking returns, as announced today by the company.
Ethereum staking proceeds refer to the rewards earned by participants who lock (stake) their ETH tokens to help secure the Ethereum network. With the CESR, RedStone aims to standardize the measurement of annual staking returns across the Ethereum validator population.
The team said the CESR is designed to provide a reliable and transparent benchmark for developers, market participants and institutional players interested in creating innovative Ethereum yield derivatives.
The new benchmark will also serve as a settlement quote for derivatives contracts. This means it takes into account all validator rewards, deposits, withdrawals and steep fines. Users will gain a comprehensive understanding of the true dynamics of the Ethereum staking environment.
RedStone said it analyzed CESR data to identify trends in deployment returns over time. Based on the analysis, a decline in staking returns was observed due to increased participation and the transformative impact of liquid staking and revival on the market.
The team expects that CESR will enable DeFi developers and institutions to create new financial products such as loans, bonds and derivatives-based
