The Validator Account: A New Numéraire for Assets on Blockchains

Abstract

We introduce the validator account as a novel numéraire for pricing assets on blockchains with staking mechanisms. By treating staking as a bank-like deposit account, we formalize the validator account as an appropriate discount numéraire. This enables the definition of a blockchain-specific equivalent martingale measure, which we call the blockchain measure B.

We develop the theoretical foundations by reviewing traditional finance frameworks, introducing blockchain-specific concepts such as staking rates, and constructing the validator account with its associated blockchain measure B; the mathematics is classical (change-of-numéraire and martingales), and the terminology is adapted for DeFi clarity. Empirically, we validate our assumptions using Ethereum data from July–September 2025, demonstrating the stability of staking rates and excluding variable components like maximum extractable value (MEV). Our analysis shows staking rates exhibit low volatility, supporting their role as a protocol-conditional risk-free rate.

This work addresses a fundamental gap in DeFi pricing theory by establishing the first formal numéraire framework for blockchain assets. Practical implications include pricing DeFi derivatives such as staking futures and liquid staking tokens, with applications in portfolio optimization under B, where risk-neutral expected returns equal the staking rate. This provides a foundation for risk management in DeFi, enabling arbitrage-free valuation and model calibration to market data.

Keywords: Blockchain, Numéraire, Staking, Arbitrage Pricing Theory, Validator Account, Staking

JEL Classification: G12, G13, E43