April 30 (Cointime) -  CoinDesk Indices, the provider of digital asset indices by AUM since 2014, has partnered with CoinFund, a Web3 and crypto-focused investment firm and registered investment adviser, to launch CESR, the composite ether staking rate.   

CESR is a global floating rate benchmark derived from the daily transaction fees and staking rewards emitted from the Ethereum Proof of Stake (PoS) blockchain. CESR will be calculated and published by CoinDesk Indices daily, seven days per week.

As a global and unbiased benchmark, CESR can serve as a fundamental building block of the Web3 economy by enabling the proliferation of loans, bonds, futures, swaps, other derivative products, and financial instruments that reference the index. According to Chris Perkins, President of CoinFund, "This benchmark is poised to precipitate the expansion of investment products across global finance to enhance stability and risk management capabilities for investors ultimately."

This benchmark serves as an essential first step in the creation of a forward rate curve, serves as a new discount rate, and allows assets across the digital domain to be priced as a relative investment to CESR, as retail and institutional market participants are granted new opportunities to gain exposure and hedge risk. CESR captures all relevant block rewards paid to network validators, comprising new emissions issued by the Ethereum PoS blockchain and transaction fees awarded from existing circulation, including maximal extractable value (MEV). The methodology accounts for protocol "slashing" and protocol withdrawals.