As reported by CoinDesk, U.S.-based digital asset data provider Lukka has teamed up with CoinDesk Indices to integrate the Composite Ether Staking Rate (CESR) into its offerings. The CESR serves as a benchmark representing the average annualized staking yield earned by Ethereum validators, factoring in consensus rewards and priority transaction fees. This metric is designed to support asset managers, financial institutions, and analysts in assessing Ethereum staking returns.
Alan Campbell, president of CoinDesk Indices, underscored the importance of this partnership, highlighting that CESR, developed in collaboration with CoinFund, establishes a vital benchmark for Ethereum staking, ensuring a standardized and reliable rate for institutional investors. Dan Husher, Lukka’s chief data product officer, emphasized that this initiative raises the bar for institutional crypto data.
Since Ethereum transitioned from a proof-of-work to a proof-of-stake consensus model in September 2022, staking activity has expanded significantly. Currently, the total value locked (TVL) in liquid staking protocols has reached $37 billion, allowing users to generate additional returns through liquid staking tokens (LSTs). Andy Baehr, CFA, head of product and research at CoinDesk Indices, pointed out that Ethereum’s shift to proof of stake has changed blockchain security from a computing power commitment to a financial one. He noted that the staking rate—essentially a utility yield for locking ETH on the network—is both accessible and measurable, making it a key factor in ETH’s investment case.
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