Grayscale has utilized Staking Rewards’ <a href="https://www.stakingrewards.com/staking-data-api">Staking Data API</a> to power a first-of-its-kind fund, aimed at optimizing staking rewards.Grayscale is the world’s leading crypto asset manager, with an estimated $50bn assets under management. Their new <a href="https://www.grayscale.com/private-funds/gdif">Dynamic Income Fund (GDIF)</a> aims to (i) optimize income, in the form of staking rewards associated with proof-of-stake digital assets with (ii) capital appreciation from such investments as a secondary goal.The fund is Grayscale’s “first actively-managed crypto fund” and is available to qualified clients (either $1.1M AuM or $2.2M net worth).Grayscale is using qualitative and quantitative factors to analyze and select proof-of-stake tokens for fund inclusion, weighting, and rebalancing.&nbsp;<img src="https://tidy-ball-c49dc59f59.media.strapiapp.com/Grayscale_Quote_4094d1c666.png" alt="Grayscale-Quote.png" width="2069" height="172">&nbsp;<h2>The Role of the Staking Data API in GDIF</h2>The <a href="https://www.stakingrewards.com/staking-data-api">Staking Data API</a> serves as an essential building block for the GDIF's reward strategies and risk management.<ol><li>Optimize Reward Strategies: By accessing comprehensive staking data, Grayscale can make informed decisions to maximize income for the fund's investors.</li><li>Enhance Risk Management: Detailed insights into network conditions and health help Grayscale mitigate potential risks, ensuring a more stable income stream.</li></ol>Staking Rewards’ Staking Data API features up-to-date staking metrics for over 80 proof-of-stake blockchains. See below the API’s benchmark reward rates and staking ratios of the assets included in GDIF:<figure class="table"><table class="ck-table-resized"><colgroup><col style="width:33.33%;"><col style="width:33.33%;"><col style="width:33.34%;"></colgroup><tbody><tr><td>Asset</td><td>Reward Rate</td><td>Staking Ratio</td></tr><tr><td><a href="https://www.stakingrewards.com/asset/osmosis">OSMO</a></td><td>10.58%</td><td>36.71%</td></tr><tr><td><a href="https://www.stakingrewards.com/asset/solana">SOL</a></td><td>7.42%</td><td>64.47%</td></tr><tr><td><a href="https://www.stakingrewards.com/asset/polkadot">DOT</a></td><td>11.91%</td><td>51.31%</td></tr><tr><td><a href="https://www.stakingrewards.com/asset/aptos">APT</a></td><td>7.00%</td><td>80.48%</td></tr><tr><td><a href="https://www.stakingrewards.com/asset/celestia">TIA</a></td><td>14.11%</td><td>53.74%</td></tr><tr><td><a href="https://www.stakingrewards.com/asset/sei-network">SEI</a></td><td>4.77%</td><td>56.27%</td></tr><tr><td><a href="https://www.stakingrewards.com/asset/near-protocol">NEAR</a></td><td>9.5%</td><td>47.37%</td></tr><tr><td><a href="https://www.stakingrewards.com/asset/cosmos">ATOM</a></td><td>17.14%</td><td>62.96%</td></tr></tbody></table></figure>The earnings from each chain are converted into USD weekly, and distributed back to investors on a quarterly basis.&nbsp;<figure class="image image_resized" style="width:75%;"><img style="aspect-ratio:1980/1320;" src="https://tidy-ball-c49dc59f59.media.strapiapp.com/gdif_graphs_allocations_b4ddc7415e.webp" alt="gdif-graphs-allocations.webp" width="1980" height="1320"><figcaption>GDIF top holdings - source: <a href="https://www.grayscale.com/private-funds/gdif">grayscale.com</a></figcaption></figure>&nbsp;According to&nbsp;<a href="https://blockworks.co/news/grayscale-fund-optimizing-staking-rewards">Blockworks</a>, the fund was seeded with internal capital from Grayscale in October of last year, a source close to Grayscale told Blockworks. As of March 5th 2024, the fund has recorded gross returns of 142%, and net fee returns of 127%, the source continued.&nbsp;The Staking Provider for Grayscale’s Dynamic Income Fund is <a href="https://foundrydigital.com/">Foundry Digital</a>. (Both companies are DCG subsidiaries)Disclosure: Digital Currency Group (DCG) is also an investor in Staking Rewards.&nbsp;<figure class="image"><img style="aspect-ratio:15069/3061;" src="https://tidy-ball-c49dc59f59.media.strapiapp.com/gdif_infographic_09efb376e2.png" alt="gdif-infographic.png" width="15069" height="3061"><figcaption>source: <a href="https://www.grayscale.com/private-funds/gdif">grayscale.com</a></figcaption></figure>&nbsp;<h2>The Challenge of Cross Chain Staking Data</h2>There is no one size fits all approach when it comes to staking data.The staking economics for each proof-of-stake chain can be vastly different. It takes a long time to research each chain and takes even longer to gather the required data to monitor and compare staking opportunities in real-time. Proof of Stake chains generally have their own unique structure, each with a different level of accessibility in blockchain data.&nbsp;In Most cases it’s just available from RPC endpoints in a very raw format.&nbsp;For each chain there are different metrics that affect the reward rate and earning opportunities for stakers. The way how reward rates are being calculated, accrued, and distributed is different for each chain.&nbsp;&nbsp;<h2>The Ultimate Solution for Analyzing Staking Data</h2>Our Staking Data API has given Grayscale access to a fully maintained data set for over 80 proof-of-stake blockchains. For each chain, we use a well-researched and documented process to gather data and maintain over 20 staking and market metrics.&nbsp;The Staking Data API is a catalyst for innovation and can be accessed by anyone to:<ul><li>Identify new staking opportunities</li><li>Monitor trends in Reward Rates for each chain</li><li>Monitor staking market conditions (net staking inflows and outflows)</li><li>Identify new staking opportunities</li></ul><a href="https://www.stakingrewards.com/staking-data-api">Sign up to the Staking Data API for a free 30-day trial</a>&nbsp;<h2>Staking Data Backed by Open Methodologies</h2>In an effort to provide greater transparency to staking data, we have introduced the <a href="https://www.stakingrewards.com/journal/news/introducing-srb-the-standard-for-staking-data-metrics">Staking Rewards Benchmark (“SRB”)</a>. Metrics backed by the SRB all have documented methodologies, to provide greater transparency and raise the bar when it comes to understanding staking data.The SRB has already been applied to various PoS network Reward Rates, as featured across our website and in the Staking Data APIGet an overview of where the SRB Reward Rate has been applied and read the methodologies&nbsp;<a href="https://app.gitbook.com/o/tMEirHPtVUPHP2O59CwZ/s/HO7GJYPa21eefwf2cvEr/what-is-srb">via the docs</a>. Otherwise, you can view the live SRB Reward Rate for staking assets such as&nbsp;<a href="https://www.stakingrewards.com/asset/ethereum-2-0">ETH</a>,&nbsp;<a href="https://www.stakingrewards.com/asset/cosmos">ATOM</a>,&nbsp;<a href="https://www.stakingrewards.com/asset/stride">STRD</a> or&nbsp;<a href="https://www.stakingrewards.com/asset/dydx">DYDX</a> on our website straight away.&nbsp;<a href="https://www.stakingrewards.com/journal/news/introducing-srb-the-standard-for-staking-data-metrics">- Learn more about the Staking Rewards Benchmark</a>- <a href="https://app.gitbook.com/o/tMEirHPtVUPHP2O59CwZ/s/HO7GJYPa21eefwf2cvEr/what-is-srb">Read the available SRB Reward Rate methodologies</a>- <a href="https://integration.stakingrewards.com/">Get your staking asset integrated into the Staking Data API</a>

Grayscale Leverages Staking Data API to Power New Staking Fund (GDIF)

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