Blockchain Oracle RedStone Unveils First On-Chain Benchmark for Ethereum Stake Returns

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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 returns, the company announced today.

Ethereum Stake Returns refer to the rewards earned by participants who stake (stake) their ETH tokens to help secure the Ethereum network. With CESR, RedStone aims to standardize the measurement of annualized returns of stake across the entire population of Ethereum validators.

The team said CESR is designed to provide a reliable and transparent measure for developers, market participants and institutional players interested in creating innovative Ethereum-yielding derivatives.

The new benchmark will also serve as the settlement quote for derivative contracts. This means it will consider all validator rewards, deposits, withdrawals and reduced penalties. Users will have a comprehensive look at the true dynamics of the Ethereum staking environment.

RedStone said it analyzed CESR data to identify trends in stake returns over time. Based on the analysis, there was a decrease in stake returns due to increased participation and the transformative impact of liquid staking and market resumption.

The team expects CESR to empower DeFi developers and institutions to create new financial products such as loans, bonds and derivatives based on Ethereum returns.

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