Soft gradient background blending light purple in the top left, blue at the top right, and fading into creamy white at the bottom.
blog

Introducing Blockdaemon’s Ethereum Staking Rewards Insurance Policy

Blockdaemon is excited to announce our participation in the premiere Ethereum Staking Rewards Insurance policy*, created by IMA Financial Group and Chainproof and benchmarked to CoinFund’s Composite Ether Staking Rate (CESR).

Ethereum Staking Rewards Insurance policy

‍

Institutions stake ETH for a reliable reward rate, but historically, rewards swing with network activity and market sentiment. 

‍

Blockdaemon is excited to announce our participation in the premiere Ethereum Staking Rewards Insurance policy*, created by IMA Financial Group and Chainproof and benchmarked to CoinFund’s Composite Ether Staking Rate (CESR). This first-of-its-kind policy provides assurance to Blockdaemon’s institutional customers for capturing reliable and steady ETH rewards.  

‍

Why an insurance policy matters

‍

ETH Protocol Reward Rates (PRR) vary with validator uptime, transaction fee levels, Maximum Extractable Value (MEV), and other factors, making annual reward rates hard to forecast. Uncertainty pushes institutional treasuries to hold excess buffer capital or avoid staking altogether. 

‍

This new insurance policy operates on an annual payout model, meaning Blockdaemon assesses our validators performance and if the staking rewards have fallen below the CESR benchmark, Blockdaemon can claim the difference with our insurance coverage enabling our institutional stakers to capture consistent rewards.

‍

“Blockdaemon is continuously focused on offering our partners and clients cutting-edge solutions for the rapidly evolving blockchain ecosystem. The Ethereum Staking Rewards Insurance policy represents a significant step forward in enhancing financial predictability for ETH staking. This innovative policy will not only offer key protection against staking reward volatility but will also help unlock new avenues and set new standards for institutional growth.” - Konstantin Richter, Founder & CEO of Blockdaemon.

‍

Conclusion

‍

By pairing Blockdaemon’s validator infrastructure with an insurance floor set to CESR, institutional stakers gain increasing confidence in securing reliable, consistent staking reward rates - key to driving further adoption. 

‍

*Disclaimer, not applicable to all customers.  Contact Blockdaemon to learn more.

‍

get started

Connect with our Institutional Team

Tell us about your market access and infrastructure requirements. Our team will be in touch to help you implement the right solutions for your institution.

Select all that apply

By clicking ‘Submit’, you agree to share your information with Blockdaemon to receive marketing, updates, and other emails. Use the unsubscribe link in those emails to opt-out at any time.

Thanks for submitting the form.