Chainproof Combats Ethereum ‘Slashing’ Losses With Guaranteed Yearly Yields

Crypto insurer Chainproof announced a new product Wednesday that lets Ethereum stakers protect against slashing and guarantees them a minimum yearly yield.

Slashing, while rare, is a big concern for stakers. It’s a feature that keeps the validators who process transactions on Ethereum in check by taking away some of their tokens if they publish incorrect data. Most slashing happens due to code bugs in validator software or human error, not because validators try to attack or cheat the system.

Chainproof’s product, which involves a partnership with insurance broker IMA Financial Group, will top up stakers’ yield if slashing causes their returns to fall below the Composite Ether Staking Rate, or CESR, a benchmark rate that represents the mean, annualized staking yield generated by all Ethereum validators. CESR was created by CoinDesk Indices (a CoinDesk subsidiary) and CoinFund.

"As staking takes center stage across a new generation of ETFs and other institutional...

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