“The CryptoCompare Blockdaemon Staking Yield Indices have created a new standard for digital asset investment products, overcoming the limitations faced by traditional indices, which do not capture any staking rewards, generated by the underlying cryptocurrency.”
FCA-authorised benchmark administrator CryptoCompare has partnered with node management and staking firm Blockdaemon to launch Staking Yield Indices.
The CryptoCompare Blockdaemon Staking Yield Index Family is designed to measure the annualised daily staking yield generated by the digital asset, allowing institutional investors to create total return and yield swap products, benchmark portfolios, conduct research, and more.
The Index Family will initially feature five regulated indices that capture the annualised daily staking yield of the top-performing PoS digital assets: Avalanche, Cardano, Cosmos, Polkadot, and Solana.
The CryptoCompare Blockdaemon Staking Yield Index Family taps the proprietary yield calculation methodology of CC Data Limited for certain proof-of-stake digital assets.
The initial five indices are:
CryptoCompare Blockdaemon Cardano Staking Yield Index
CryptoCompare Blockdaemon Solana Staking Yield Index
CryptoCompare Blockdaemon Avalanche Staking Yield Index
CryptoCompare Blockdaemon Cosmos Staking Yield Index
CryptoCompare Blockdaemon Polkadot Staking Yield Index
Participants of Proof-of-Stake (PoS) blockchains delegate – or stake – their digital asset holdings to a validator node to further secure and strengthen a blockchain network while being rewarded with staking rewards for doing so.
Currently, billions of dollars are staked across the digital asset ecosystem, which have been ignored by traditional index products until now.
These indices capture staking rewards generated by underlying cryptocurrency
Charles Hayter, CEO and Co-Founder of CryptoCompare, said: “The CryptoCompare Blockdaemon Staking Yield Indices have created a new standard for digital asset investment products, overcoming the limitations faced by traditional indices, which do not capture any staking rewards, generated by the underlying cryptocurrency. These new innovative indices remove this hurdle, opening the door for new market participants while giving investors a vehicle by which they can easily gain exposure to the opportunities provided by staking.”
Konstantin Richter, CEO and Founder of Blockdaemon, said: “These indices further exemplify our ability to deliver new and innovative institutional solutions using our proven, widely adopted staking infrastructure. By utilising the CryptoCompare Blockdaemon Staking Yield Indices, pivotal real-time and historical data allows institutional investors and network participants to have access to crucial insights to make key performance-driven decisions.”
Tim Bevan, co-CEO at ETC Group, commented: “We see this as a vital step to providing better access to institutional investors into the digital assets marketplace. Transparent, independent benchmark data provides the reference points required to navigate successfully and with confidence.”
ETC Group will be the first to license the Staking Yield Index Family for a series of products planned for Q4 2022. The firm was a key driver in the development of this suite of independent benchmarks.