U.S.-based digital asset data firm Lukka has partnered with CoinDesk Indices to incorporate the Composite Ether Staking Rate (CESR) into its suite of services.
This CESR will reflect the average annualized staking yield gained by Ethereum validators, encompassing both consensus rewards and priority transaction fees. It serves as a useful benchmark for financial institutions, asset managers, and analysts assessing ether staking performance.
“Our partnership on the CESR provides a vital benchmark for Ethereum staking, giving institutions a reliable and standardized rate,” stated Alan Campbell, president of CoinDesk Indices.
Dan Husher, the chief data product officer at Lukka, emphasized that this collaboration represents a commitment to “enhanced standards for institutional crypto data.”
Since Ethereum shifted from a proof-of-work to a proof-of-stake consensus mechanism in September 2022, staking has seen significant growth. Currently, there is approximately $37 billion locked in total value across liquid staking protocols, which enable users to earn extra yield by issuing liquid staking tokens (LSTs).
“Ethereum’s transition to proof of stake changed blockchain security from relying on computational power to a focus on financial commitments,” remarked Andy Baehr, CFA, head of product and research at CoinDesk Indices. “Because the staking rate acts as a measurable utility yield for posting ETH to the network, it becomes a crucial aspect of the investment rationale for ETH.”