CESR, by CoinDesk Indices and CoinFund, will
enable Rho traders to better express their views on the
Ethereum staking rate's trajectory and manage rate
risk.
NEW
YORK, April 17, 2024 /PRNewswire/ -- Rho Labs,
developer of the interest rate derivatives protocol, Rho, today
announced the upcoming availability of CESR, the composite ether
staking rate in Rho markets.
Computed and published seven days a week by CoinDesk
Indices—the leading provider of digital asset indices since
2014—CESR is a benchmark rate for the Ethereum staking
yield, comprising consensus rewards and priority transaction fees
paid to active validators. CoinDesk Indices brought CESR to market
in 2023 in partnership with CoinFund—a leading Web3 and
crypto-focused investment firm and registered
investment adviser—to deliver this important piece of market
structure.
CESR will help Rho users manage risk from Ethereum
staking yields and transaction costs more efficiently, and lock-in
fixed rates of return for counterparties.
Founded in 2022, Rho Labs is constructing a non-custodial,
institutional-grade interest rate derivatives market on Arbitrum,
fostering secure and transparent on-chain trading for
crypto-specific rates such as staking.
"As institutional investors grow their internal digital asset
capabilities, we have seen huge interest in the staking economy,
with staking yields becoming table stakes for serious
ETH-based products and services," said Alex Ryvkin, founder of Rho Labs. "By
leveraging CESR, we are excited to deliver the tools that offer
traders greater accessibility and pave the way for innovative
crypto financial products."
CESR allows assets across the digital domain to be priced as a
relative investment to a benchmark Eth staking rate that captures
all relevant block rewards paid to network validators and accounts
for protocol "slashing" and protocol withdrawals. It also lays the
groundwork for the creation of a forward rate curve and can serve
as a new discount rate, two critical mainstays of traditional
finance.
"Since launching CESR in 2023, we are pleased to see this
benchmark rate grow to support crypto-based finance,"
said Alan Campbell, president of
CoinDesk Indices. "We are excited for industry leaders and
innovators like Rho Labs to use CESR and accelerate the utility and
pragmatic adoption of digital assets."
In traditional finance, interest rates underpin the largest
markets in the world and serve as a fundamental pillar of economic
activity. Staking rates can do the same for the crypto
industry by delivering a new class of standardized benchmarks,
powering next-generation financial products, improving risk
management, and unlocking new functionality for institutions and
consumers alike.
"Staking rates are to crypto what interest rates
are to traditional financial markets. CESR was designed to spur
investment product growth and new opportunities for risk management
across global finance, thereby unlocking the utility of the
$500 trillion traditional rates
markets across the crypto industry," said
Chris Perkins, President of
CoinFund. "We are thrilled Rho Labs and other industry leaders
are adopting CESR to unlock opportunities on the
Ethereum blockchain."
For more on Rho Labs, please
visit https://www.rho.trading/.
For more on CESR, please
visit: coindesk.com/indices/ether/cesr.
About CoinDesk Indices
CoinDesk Indices has led the
digital asset revolution, empowering global investors since 2014.
Backed by Bullish, our indices are the cornerstone of the largest
digital asset products worldwide. Precision-driven and compliant,
indices like the CoinDesk 20 set the standard for measuring,
trading, and investing in crypto. Over $30B in assets are benchmarked to CoinDesk
Indices' products. CoinDesk Indices' trend signals empower smart
beta and alpha-seeking strategies. Ready to achieve your digital
asset goals? Visit coindeskmarkets.com for more.
About Rho Labs
Rho Labs is the developer of Rho
Protocol, a novel institutional-grade decentralized
marketplace on Arbitrum that allows retail and professional traders
to exchange interest rate risk via on-chain swaps and futures in a
secure, efficient, and compliant manner. Rho Protocol's first
family of products are fixed-for-floating interest rate futures on
a diverse set of index rates. In TradFi, this product comprises
over 60% of the total outstanding interest in interest rate
derivatives.
CoinDesk Indices disclaimer:
CoinDesk is a portfolio
company of the Bullish group. CoinDesk Indices, Inc. ("CDI") does
not sponsor, endorse, sell, promote or manage any investment
offered by any third party that seeks to provide an investment
return based on the performance of any index. CDI is neither an
investment adviser nor a commodity trading advisor and makes no
representation regarding the advisability of making an investment
linked to any CDI index. CDI does not act as a fiduciary. A
decision to invest in any asset linked to a CDI index should not be
made in reliance on any of the statements set forth in this
document or elsewhere by CDI. All content contained or used in any
CDI index (the "Content") is owned by CDI and/or its third-party
data providers and licensors, unless stated otherwise by CDI. CDI
does not guarantee the accuracy, completeness, timeliness,
adequacy, validity or availability of any of the Content. CDI is
not responsible for any errors or omissions, regardless of the
cause, in the results obtained from the use of any of the Content.
CDI does not assume any obligation to update the Content following
publication in any form or format. © 2024 CoinDesk Indices, Inc.
All rights reserved.
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SOURCE CoinDesk Indices