Lukka Integrates Composite Ether Staking Rate With CoinDesk Indices

According to CoinDesk, U.S.-based digital asset data provider Lukka has partnered with CoinDesk Indices to incorporate the Composite Ether Staking Rate (CESR) into its services. The CESR is designed to reflect the average annualized staking yield earned by Ethereum validators, encompassing consensus incentives and priority transaction fees. This benchmark aims to assist financial institutions, asset managers, and analysts in evaluating ether staking performance. Alan Campbell, president at CoinDesk Indices, emphasized the significance of this collaboration, stating that the partnership with CoinFund on CESR provides a crucial benchmark for Ethereum staking, offering institutions a reliable and standardized rate. Dan Husher, chief data product officer at Lukka, highlighted that this agreement sets a "higher standard for institutional crypto data." Ethereum staking has seen significant growth since the blockchain's transition from a proof-of-work to a proof-of-stake consensus mechanism in September 2022. Currently, there is $37 billion in total value locked (TVL) across liquid staking protocols, which allow users to earn additional yield through the issuance of liquid staking tokens (LSTs). Andy Baehr, CFA, head of product and research at CoinDesk Indices, noted that Ethereum’s shift to proof of stake has transformed blockchain security from a commitment of computing power to a financial commitment. He added that since the staking rate, effectively a utility yield for posting ETH to the network, is both accessible and measurable, it becomes a crucial component of the investment case for ETH.