It’s hard for projects to beat the returns offered by staked ether on a risk-adjusted basis.
Consequently, the asset and its yield are becoming a benchmark for the crypto economy in similar fashion to the fed funds rate and the traditional economy.
Slowly but surely, staked ether (stETH) is becoming a benchmark for the entire on-chain economy.
According to a new report from investment management firm ARK Invest, Ethereum’s monetary policy has turned staked ether into a unique type of asset – one that resembles sovereign bonds.
“The ETH staking yield is a gauge for smart contract activity and economic cycles in the digital asset space, much like the fed funds rate in traditional finance,” wrote Lorenzo Valente, a research associate at ARK Invest.
Ethereum is designed in such a way that ether (SOL) or Avalanche <a href="https://coindesk.com/price/avax/" data-position="autolink" title="Avalanche Price
