Five Reasons Why the World Needs a Standardized Ethereum Staking Rate

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An ether (ETH) staking benchmark could attract institutional investors into the Ethereum ecosystem and unlock a new wave of innovation.

. In time, investors seeking to maximize risk-adjusted yield will need to seriously consider deploying capital for the real-yield opportunities across Ethereum’s staking economy.When it comes to exchange-traded products and other structured instruments, market participants do not want to limit their market exposure to ETH; they prefer products that deliver total return ETH, which includes the staking rate.

In traditional financial markets, interest rates alone underpinin notional swaps exposure, and derivatives such as these enable stakers to hedge against the volatility of the benchmark while also allowing market participants to hedge against future rising gas costs or seek real yield. Derivatives will also allow institutional staking providers to offer fixed-yield rate products, which are few and far between in crypto but widely available in traditional finance.

 

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