AnkrETH Joins the EigenLayer Ecosystem as a Collateral Asset

Diogo Costa

Diogo Costa

November 22, 2023

3 min read

In Brief

    We are excited to announce that AnkrETH will be integrated as a Liquid Staking Token (LST) collateral on EigenLayer. This integration introduces a new use case for the Ankr liquid staking token. It also positions Ankr as an active participant in the decentralized trust marketplace created by EigenLayer.

    What is EigenLayer and restaking?

    EigenLayer is a middleware protocol built on Ethereum’s blockchain, that introduces the new cryptoeconomic primitive of ‘restaking’​​. EigenLayer's proposition is to commoditize trust and create a general-purpose marketplace for it. Thus, enabling the reuse of staked ETH or liquid staking tokens (LST) like ankrETH on the consensus layer​​​​.

    EigenLayer serves as blockchain security-as-a-service, offering a solution for protocols that require Ethereum's highly secure trust network, to perform off-chain operations such as bridges or oracles, but do not wish to establish their own validator sets​​​​​​. By enabling restaking, EigenLayer facilitates the rehypothecation of ETH or its LSTs, extending their utility beyond the primary staking purpose​​.

    What are the advantages of this integration to the ankrETH token?

    The integration of ankrETH as a collateral asset on EigenLayer creates yet another use case for the LST. Now, besides being able to provide security for the Ethereum network, Ankr LSTs users are enabled to provide security to further use cases, all while leveraging from 2 layers of yield.

    In a nutshell, it will allow the following:

    Extended Utility: ankrETH holders will be able to leverage their assets in the EigenLayer ecosystem, contributing to Ethereum's security and participating in various DeFi applications that EigenLayer supports​​. Enhanced Composability: This integration provides ankrETH holders with additional composability options, broadening the scope of their investment strategies and financial planning. Increased Adoption: By becoming a collateral token on the EigenLayer framework, Ankr’s LST will benefit from yet another use case, paving the way for increased adoption of the Ankr platform. Innovative Use Cases: The combination of Ankr's staking rewards and EigenLayer's restaking capabilities open up new avenues for innovative use cases. Furthermore, by enabling the restake of ankrETH, it will be possible to implement a Liquid Restaking Tokens (LRT) solution, that will allow users to receive rewards on both layers while remaining liquid.

    Final Thoughts

    The integration of ankrETH as a collateral asset on EigenLayer’s framework represents a significant milestone in expanding Ankr’s use cases, creating yet another relevant use case. This collaboration not only enhances the utility of ankrETH but also enriches the DeFi landscape with more robust and versatile financial solutions. With EigenLayer's dependency on the different LSTs in the market, we see it as of paramount importance to diversify the integrated solutions, thus diminishing the exposure to specific assets.

    We are thrilled to become an integral member of this ecosystem and joyful with the prospect of being a key member in the development of new solutions for Ethereum’s network.