Liquid Staking Upgrades: Responding to the Shanghai Upgrade
April 10, 2023
7 min read
In the near future, Ankr is set to launch a series of updates that will significantly enhance the user experience of liquid staked ETH (ankrETH). These updates are a result of the upcoming Shanghai upgrade, and will include new bridges and integrations, flash unstaking, an ETH Validator Hub, and much more. In this article, we will be taking a closer look at all of the different upgrades that are going live for ankrETH as a result of the Shanghai upgrade, and discussing how they will benefit platform users.
Unstake Your Liquid Staked ETH with Ankr
Ankr has implemented an update that will allow users to unstake their ankrETH tokens immediately following the upgrade. Some would say that the Shanghai is the most long awaited upgrade to the Ethereum network following the merge. Billions of dollars of ETH will be unlocked and if you hold ankrETH you will be able to unstake your assets and receive ETH in return for the first time ever.
Furthermore, Ankr is one of the first liquid staking platforms to unlock this feature.
More Bridges for Ankr’s Liquid Staking Tokens
Ankr has announced a range of new bridges and integrations to enhance user's blockchain experience. With the new bridges, users can now take advantage of other blockchain ecosystems such as Avalanche, Polygon's zkEVM, and Fantom.
The new AnkrETH to Avalanche bridge will provide users with access to Avalanche's vast DeFi ecosystem, which includes decentralized exchanges, lending platforms, and yield farming opportunities.
Similarly, the AnkrETH and ankrMATIC bridges to Polygon's zkEVM and Fantom will enable Ankr users to access the thriving DeFi protocols on these ecosystems. These new bridges and integrations will not only increase the value of users' staked funds but also open up new possibilities for exploring and participating in other blockchain ecosystems.
ETH Validator Hub
Another upgrade that will go live along with the Shanghai upgrade is the ability to have more agency and control over the validators that your ETH are being delegated to. Whereas before this upgrade you didn’t have control over which validator you got to delegate your staked ETH to, now that will change.
The ETH Validator Hub upgrade from Ankr will consist of several features and services designed to provide users with greater control over their assets and mitigate risks associated with liquid staking. The first feature is an open marketplace that will allow users to choose which nodes to delegate their assets to, giving them greater flexibility and control over their investments. Additionally, the ETH Validator Hub will offer slashing protection pools to help protect staked assets from the risk of slashing. This is particularly important given that Ethereum does not natively support delegate staking like many other proof-of-stake networks.
Node operators will be able to choose whether to have a slashing pool or not, and the decision to delegate ETH validation keys to a node operator with or without a slashing pool is up to delegate stakers. Ankr will provide the underlying infrastructure to support the ETH Validator Hub, including onboarding new node operators and ensuring the marketplace is transparent for all parties involved. With these upgrades, Ankr is positioning itself as a leading DeFi platform, offering users a range of opportunities to earn passive income and take advantage of the rapidly evolving DeFi ecosystem on the Ethereum network.
Furthermore, rewards earned from staking are automatically compounded, creating a compounding effect that generates even more rewards over time. Restaking provides an easy and efficient way to earn more passive income through staking, catering to users seeking higher yield without complex DeFi strategies. Restaking also makes on-chain slashing coverage more capital efficient for node operators, as they can now share a lower portion of their operator fees with slashing pool stakers who receive additional restaking rewards on top of the ETH staking APY.
Once the Shanghai upgrade goes live you’re withdrawals will be secured as a result of Ankr’s partnership with Cubist. We’ve partnered with Ankr to provide security upgrades that enhance the process of unstaking and withdrawing ETH. Some of the components of this upgrade include enhanced security functions for deposit and withdrawal to ensure that your assets are protected and safe. Cubist has also implement a comprehensive backend to safeguard validator keys. Lastly, Cubist offers an on-chain–verifiable deposit and withdrawal flows so that you will have increased transparency into the whole process.
Ankr’s Price Feed Oracle
To further enhance the value of ankrETH, Ankr is introducing a price feed oracle that will provide accurate and timely data on the value of ankrETH. This will enable users to make informed decisions about their investments and trade with confidence. Additionally, AnkrETH will be listed on popular lending markets, which will provide users with even more opportunities to generate passive income from their staked funds. By expanding the number of platforms on which AnkrETH is available, Ankr is increasing its reach and making it easier for users to access this valuable asset. As a result, users can expect greater transparency and security around the value of their holdings, as well as a wider range of investment options that can help them achieve their financial goals.
Flash Unstaking Going Live on More Chains
Finally, Ankr is introducing flash unstaking on other blockchain ecosystems, including BNB Chain, Polygon, Fantom, and Avalanche. This will enable users to quickly and easily withdraw their staked funds on these networks, further increasing the liquidity and flexibility of their holdings.
By offering flash unstaking on multiple blockchain ecosystems, Ankr is providing users with more options and greater flexibility when it comes to managing their holdings. This will also help to increase liquidity, as users will be able to quickly convert their holdings to other assets if they so choose.
In addition, the introduction of flash unstaking on these networks represents a significant step forward in terms of accessibility. With this feature, users will be able to quickly and easily withdraw their funds, without having to navigate complicated and time-consuming withdrawal processes. This will make it easier for new users to get started with staking, as they will not have to worry about the pain of unbonding periods.
Distributed Validator Technology Going Live
Ankr has partnered with the SSV Network and Obol to integrate their decentralized node operation technology into Ankr's liquid staking product. This new technology utilizes SSV's Secret Shared Validator or Distributed Validator Technology (DVT) to split validator keys between four operators, improving the uptime and slashing risks associated with validator node operation. With this technology, node operators do not need to trust each other, and none can make unilateral decisions on behalf of the validator, thus increasing the security of the network. The integration of this technology into Ankr's liquid staking product will provide users with a trustless solution, reducing the risk of slashing and diversifying risk. Ankr will offer two liquid staking solutions, classic Ethereum liquid staking, and the SSV trustless liquid staking solution, after the launch.
Liquid staking has always had a risk of slashing. The biggest obstacle that has stopped users from engaging with liquid staking was the uncertainty about the slashing risk involved with liquid staking assets. SSV technology has provided a way to reduce failures and diversify risks by combining independent SSV nodes into a robust network that can outperform any individual ETH staking setup. With Ankr's liquid staking product and SSV's innovative technology, investors can make smarter Ethereum liquid staking investment decisions without having to worry about the risks of slashing.
Overall, Ankr's upgrades provide users with greater flexibility, control, and opportunities for earning passive income. Ankr's expansion to other blockchain ecosystems increases the value of users' staked funds and opens up new possibilities for exploring and participating in other blockchain ecosystems. With Ankr's commitment to security and transparency, users can rest assured that their assets are protected and safe, and that they have access to accurate and timely data on the value of their holdings. Ankr's upgrades highlight the importance of innovation and adaptation in the rapidly evolving DeFi landscape and position Ankr as a leading DeFi platform for the future.