The Future of Liquid Staking: AnkrETH v3
March 6, 2023
4 min read
Ankr is at the forefront of this revolution with its AnkrETH v3 liquid staking offering, aiming to be the most liquid and decentralized solution in the market. We’re consistently working to become a more trustless, transparent, and decentralized Ethereum liquid staking node operation. It allows external nodes to participate, with Ankr stakers voting on which pools the ETH gets delegated to.
This approach creates an open architecture that provides a democratic and decentralized solution. Ankr is starting by creating the Ethereum Validator Hub, an open marketplace for nodes that meet certain criteria that will eventually be utilized as nodes in our liquid staking offering.
That being said, Ankr's primary goal is to increase liquidity for its liquid staking offering, which is a significant challenge, but achievable. Creating an open and decentralized architecture that allows external nodes to participate in the operation increases node diversity, plus our restaking service and the transition to omnichain will improve the liquidity on secondary exchanges in the market.
In this article, we’ll be diving into all of the revolutionary improvements that ankrETH v3 liquid staking will be bringing to the market and how this will impact the future of the market.
What is DVT?
Ankr's Decentralized Validator Technology (DVT) is a critical component of its liquid staking offering, allowing users to share the key amount among several people, reducing the risk of slashing. This innovative approach to staking provides an additional layer of security that is not available in traditional staking solutions.
Ankr recently announced partnerships with Obol and SSV, which strengthens its liquid staking offering. The Obol and SSV partnerships mitigate an array of risk factors associated with slashing. Specifically, they’ve created technology that shares the keys with several people while keeping the keys private and ensuring that no more than one validator can ever be online at any given time.
Overall, this increases the trustlessness of Ankr liquid staking by removing Ankr as the primary intermediary of funds and makes the entire process more permissionless.
Higher Node Diversity
AnkrETH v3 liquid staking is so innovative due to its open and decentralized architecture that allows external nodes to participate in the staking operation. This approach creates a more democratic and decentralized solution that is not reliant on a central authority to operate. By allowing external nodes to participate, Ankr can achieve higher node diversity, which ultimately leads to a more liquid market.
Higher Yield with Restaking
The restaking feature in AnkrETH v3 allows users to automatically reinvest their staking rewards into the same staking pool. This means that users don't have to manually withdraw their rewards and then restake them, which can be time-consuming and sometimes lead to lost rewards due to slippage or other factors.
By enabling automatic restaking, AnkrETH v3 incentivizes users to keep their assets staked for longer periods of time, which increases the overall yield they receive from staking. This is particularly important in the world of cryptocurrency, where volatility is high and prices can fluctuate rapidly.
The increased yield from restaking rewards can make the offering more attractive to users, particularly those who are looking for passive income streams or who want to maximize their returns from their staked assets. Additionally, by making the staking process more automated and user-friendly, AnkrETH v3 lowers the barrier to entry for new users who might be hesitant to stake their assets due to a lack of technical knowledge or experience.
Transitioning to Full Omnichain
Ankr is on the road to creating an omnichain liquid staking solution, which will allow for seamless staking across multiple blockchains. This is made possible in part by Ankr's dedicated bridge for liquid staking, which reduces the risk of transferring assets between chains and provides a more secure and efficient way to stake. This solution will offer greater flexibility and accessibility for users, while also ensuring the highest level of security and reliability.
The Most Liquid Liquid Staking
We’ve been hard at work developing the most liquid version of liquid staking tokens. What we mean by this is that we’re enabling near instantaneous unstaking through our flash unstaking feature.
Traditional Unstaking, which typically involves a 7-10 day unbonding period, is lengthy and time-consuming. Meanwhile, it leaves your tokens stuck in the unbonding process and completely inaccessible (aka illiquid). With Flash Ustaking, users can initiate the unstaking process and see the original tokens appear in their wallet within seconds.
This feature has been rolled out for ankrBNB currently, keep an eye out for updates on implementation to other chains. Ethereum hasn’t yet enabled users to unstake their Ethereum so this feature is currently unavailable for ankrETH.
In conclusion, Ankr is leading the liquid staking industry with its AnkrETH v3 offering. Its focus on an open and decentralized architecture, higher node diversity, restaking features, and partnerships with Obol and SSV all contribute to making it the most liquid and decentralized liquid staking solution in the market. Additionally, its commitment to becoming an omnichain liquid staking solution and the introduction of Flash Unstaking reinforce its dedication to innovation and creating a more accessible and secure staking ecosystem. Stay ahead of the game in the evolving blockchain ecosystem with Ankr's AnkrETH v3.