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Ethereum Staking Rate Benchmarks

Ethereum Staking Rate Benchmarks is a primer on the emerging space of standardized measures for Ethereum staking rewards and related financial instruments such as Ethereum staking rate dated futures and swaps.
 

The Ethereum staking market has grown significantly, with 28% of all Ethereum currently staked. As of October 1, 2024, this translates to ~34.5 million ETH staked, valued at approximately USD$90.25 billion.

This substantial growth, coupled with the considerable number of validators and the fluctuating nature of rewards, presents a compelling opportunity for financial instruments designed to manage and optimize staking rewards in the Ethereum ecosystem.

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Ethereum Staking Rate Benchmarks provides an overview of the key components, and use cases of these benchmarks, such as structured financial products, performance benchmarking, and derivatives trading. It also discusses the potential risks and challenges associated with these benchmarks, including technical, market-related, regulatory, and operational risks.

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Primer: Ethereum Staking Rate Benchmarks

Ethereum staking can be approached in two primary ways: native staking and liquid staking.

While both native and liquid staking approaches provide opportunities to earn staking rewards, the fluctuating nature of these rewards has created a need for a standardized benchmark to measure staking yields across the ecosystem. This is where the benchmark rates come into play.

 

This primer covers some of the key Ethereum staking benchmarks available in the market, including the CF ETH Staking Reward Rate (ESRR), the MarketVector™ Figment Ethereum Staking Reward Reference Rate (STKR), the Compass Staking Yield Reference Index Ethereum (STYETH), CoinDesk Indices Composite Ether Staking Rate (CESR) and Lido Ethereum APR but also the upcoming Decentralized Offered Rates (DOR) framework from Treehouse.

 

Key Takeaways:
 

  • Ethereum staking has grown significantly, with approximately 34.5 million ETH (valued at $90.25 billion) staked across over 1 million validators as of October 2024.
     

  • Several Ethereum staking rate benchmarks are available including CESR™, STKR, ESSR, STYETH, Chainlink ETH Staking APR, and Lido Ethereum APR. These benchmarks aim to provide standardized measures of Ethereum staking yields.
     

  • Use cases include structured financial products, hedging and risk management, performance benchmarking, and derivatives trading.
     

  • Ethereum staking rate derivatives, such as swaps and dated futures, are emerging as new financial instruments to manage exposure to staking yields.

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  • The development of Ethereum staking rate derivatives markets is still in its early stages, with only a limited number of stakeholders actively working on these products.

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ACCESS THE ETHEREUM STAKING RATE BENCHMARKS PRIMER

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Learn how Ethereum staking rates benchmarks could help develop new digital asset derivatives markets, opening new opportunities for investors and institutions alike.

 

This report introduces key players, methodologies, and emerging financial instruments in the Ethereum staking ecosystem, providing essential insights for anyone looking to navigate this rapidly evolving market.  Participants that have contributed their expertise and insights include contributors from Pier Two, Treehouse Labs, Kaleido and others!

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