Blockchain oracle RedStone unveils first on-chain benchmark for Ethereum staking yields

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RedStone, a modular blockchain oracle provider, has launched the Composite Ether Staking Rate (CESR), the first on-chain benchmark for Ethereum staking yields, as announced by the company today.

Ethereum staking yields refer to the rewards earned by participants who lock up (stake) their ETH tokens to help secure the Ethereum network. With CESR, RedStone aims to standardize the measurement of annualized staking yields across the Ethereum validator population.

The team said that CESR is designed to provide a reliable and transparent metric for developers, market participants, and institutional players interested in creating derivative products.

The new benchmark offers a consistent daily snapshot of staking yields, which is crucial for understanding the current state of the Ethereum staking market. It serves as a reliable benchmark for creating derivative contracts based on Ethereum staking yields, providing a comprehensive view of staking rewards, including consensus rewards, total priority transaction fees, and accounts for deposits, withdrawals, and slashing events.

In addition, daily CESR rates can be aggregated over various periods, offering flexibility for analyzing historical trends and performance.

RedStone expects CESR to empower DeFi developers and institutions to create new financial products such as on-chain interest rate swaps, staking rate derivatives, and insurance, as well as yield-curve products.

“The launch of CESR represents a significant step forward in standardizing and measuring Ethereum staking yields. As staking and restaking continue to evolve and introduce new complexities, CESR provides a reliable foundation for building innovative financial products and gaining deeper insights into the Ethereum ecosystem,” RedStone stated.

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