MarketVector Indexes and Figment, a provider of staking infrastructure, have launched their first staking rewards indexes, in collaboration with Digital Asset Research as the pricing provider.
The staking reward indexes include the MarketVector Figment Ethereum Staking Reward Reference Rate and the MarketVector Figment Ethereum Total Return Index.
The MarketVector Figment Ethereum Staking Reward Reference Rate measures the annualised rate resulting from staking ETH on Ethereum. The Rewards Rate encompasses rewards from all activities on the Consensus Layer, including block proposals, attestations, sync committee, slashing reporting and the Execution Layer, including priority transaction fees and MEV. Penalties incurred from slashing are automatically deducted.
“MarketVector Indexes is committed to innovation across our product set, but especially with our cutting-edge Digital Asset Index family,” says Steven Schoenfeld, CEO of MarketVector. “The MarketVectorTM Figment Ethereum Staking Reward Reference Rate and the MarketVectorTM Figment Ethereum Total Return Index are the latest examples of our pioneering role in Crypto benchmarks, a field we entered in 2017 when the industry was in its infancy.”
The MarketVectorTM Figment Ethereum Total Return Index takes a comprehensive and flexible approach by combining Ethereum’s Consensus and Execution Layer rewards with the daily market price. This approach provides a holistic perspective on Ethereum’s performance, considering all possible reward sources and slashing incidents while utilizing reliable exchange data to capture the market price of Ethereum.
Understanding that different markets have unique requirements, MarketVector creates highly customisable indexes to cater to the needs of various institutions. With the flexibility to modify several components of the index, clients can choose from options such as adjusting market price timing to align with their product’s market, selecting the types of rewards to incorporate (either from the Consensus and Execution layers or just the Consensus layer), and focusing on specific validator subsets for custom indexes. They can also select from a range of reward models tailored to their strategic objectives. This level of customization demonstrates MarketVector’s commitment to delivering bespoke solutions in the dynamic digital asset landscape.
“We’re immensely proud to announce the launch of the MarketVectorTM Figment Ethereum Staking Rewards Reference Rate and the groundbreaking MarketVectorTM Figment Ethereum Total Return Index,” says Martin Leinweber, CFA, Digital Asset Product Strategist of MarketVector. “With these indexes, we’ve coupled institutional grade data with complete customisability to offer a detailed understanding of Ethereum’s value and reward system. This marks a major milestone in digital asset markets, as we bring forward the first-ever Ethereum Total Return product, a significant addition that was long overdue. Our commitment to innovation underscores our mission to empower investors and stakeholders with accurate, comprehensive, and adaptable benchmarks in the digital asset realm.”
“We’re honored to be chosen as the pricing provider and calculation agent for MarketVector’s new digital asset indexes,” says Doug Schwenk, CEO of Digital Asset Research. “We apply a rigorous, transparent methodology to asset pricing so investment professionals can accurately measure performance. This is an exciting start to our expanding relationship with MarketVector.”
While the partnership’s initial focus is on solutions for institutions and investors in Ethereum, this partnership paves the way to expand and extend these capabilities to other digital assets in the future.
“This groundbreaking initiative heralds a new era of opportunity for the evolution of digital asset capital markets and asset management products,” said Joshua Deems, International Business Development Lead at Figment. “We take pride in empowering institutions to confidently stake their Ethereum. Now, we are delighted to introduce a dependable rewards rate and total return index, made possible through our collaboration with index partner MarketVector and market data provider Digital Asset Research. We eagerly anticipate engaging in conversations about the new capabilities with our valued clients, prospective partners, and newcomers to the industry.”
