The benchmark is derived from daily transaction fees and staking rewards generated by Ethereum, bringing pricing tools that institutional investors expect into digital assets.
CoinDesk Indices and crypto investment firm CoinFund have jointly launched a benchmark that tracks Ethereum staking rates and brings accoutrements that institutional investors expect into digital assets.
The Composite Ether Staking Rate (CESR) will be computed and published seven days a week, according to a Thursday statement. It accounts for block rewards, new emissions, transaction fees, maximal extractable value (MEV), protocol slashing and withdrawals.
“Our partnership with CoinFund creates such a foundational piece of infrastructure to crypto-asset markets,” Alan Campbell, president of CoinDesk Indices, said in the press release. “Drawing on our experience managing the longest-running and largest benchmarked crypto indices globally, we’re excited to launch CESR, a building block for crypto-based finance.”
The launch of CESR helps create the market infrastructure to allow for a forward rate curve and a discount rate – which are pillars of traditional finance (TradFi) used to value assets – and it allows for digital assets to be priced in relation to CESR.
Roger Bayston, head of digital assets at fund manager Franklin Templeton, said in the release that his firm is “very excited about the launch of CESR” because it opens new pathways for the industry, particularly for TradFi firms intrigued by crypto.
CoinDesk Indices hasn’t announced a launch date yet for CESR, but says it will be in the coming weeks.
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