Kusama Liquid Staking
What and why is Kusama Liquid Staking?
Kusama Staking uses nominated proof-of-stake (NPoS) as its foundation consensus mechanism. By staking KSM on the Kusama blockchain, participants earn rewards and help to bring economic security to the networks.
Kusama Liquid Staking from Ankr Staking offers instant liquidity for your staked KSM.
Kusama Liquid Staking enables you to earn alpha (the return on investment that goes beyond normal increases in the crypto market index).
Ankr Staking can connect you to the best ways to earn more crypto by staking, arbitrage trading, liquidity mining, yield farming, and much more.
We seized active support of Kusama Liquid Staking. There are no new stakes getting aKSMb.
However, your old stakes keep generating you rewards.
For information on KSM Liquid Staking smart contracts, visit KSM development details.
Staked assets are illiquid. Stakers must wait 7 days to unstake KSM. Also, during the unstaking period, unstaking assets are not entitled to additional reward. This creates an opportunity cost in time and capital for the user. Only after unstaking does KSM become redeemable and available for reinvestment.
Using Ankr Staking is the best way to stake KSM as you can access instant liquidity in the form of the aKSMb token. Avoiding locking your KSM up with the Kusama network is a big advantage — it allows you to use the value of your staked tokens to earn multiple layers of rewards on DeFi platforms and multiply your ROI potential. Yield farming, arbitrage trading, lending, and more will all be possible using the value of your staked assets.
As Liquid Staking solves the capital inefficiency problem of (Nominated) Proof-of-stake networks, it offers a way to earn additional rewards on your staked KSM, enabling new yield farming strategies. The main benefits of KSM Liquid Staking are:
- Liquidity mining opportunities are enabled by providing liquidity for pools in decentralized exchanges. The first main liquidity pools are expected to be aKSMb/ETH.
- Farming rewards for liquidity providers: Liquid Staking presents several yield farming strategies for users to contribute to liquidity pools and gain a share of the trading fees and governance tokens. These new LP tokens can be used to generate yet another layer of earnings.
- Staking rewards on farmed tokens: After using yield farming strategies, users can also reinvest their farmed LP tokens into more staking opportunities. This is a highly repeatable process as layers of rewards from farming and staking will quickly stack up.
- Yield aggregators and vaults can automate yield farming rewards and enable compounding returns with next to no effort from users. This is a great method for maximizing your passive income strategy.
- More trading opportunities are enabled thanks to the elastic supply nature of aKSMb, meaning that you could potentially buy aKSMb at a discount on a Decentralized Exchange and redeem it (unstake it) on Ankr Staking to extract its fair value back in up to 7 days (the Kusama Liquid Staking unbonding period).
If you would like to unstake your KSM, you can choose the “unstake” option at any time on the Ankr Staking platform. After you select unstake, you will need to wait up to 7 days unbonding period before you can claim your funds. During this time, your KSM will still be earning staking rewards. This creates a more robust price stability mechanism for Kusama Liquid Staking, where any price deviation of aKSMb vs. its fair value will create trading opportunities that can be exploited by redeeming aKSMb (unstaking KSM) or minting aKSMb (staking KSM).
That means if you buy aKSMb at a discount on a DEX and unstake it on Ankr Staking at its fair value, you will make a profit! Therefore, aKSMb price stability will be less dependent on the size of liquidity pools and associated rewards.
Borrowing and Lending
The aKSMb tokens will also allow users to borrow against their aKSMb assets in exchange for assets like KSM that can be restaked or used for additional earning strategies. Or, lend your aKSMb assets in return for interest paid by borrowers.
No technical knowledge required
Receive an easier staking experience with no technical knowledge necessary. Liquid Staking makes staking as easy as a swap: exchange your KSM for the reward earning aKSMb token.
Our Kusama Liquid Staking will not be using only Ankr validator nodes to stake the KSM from users. Ankr Staking will select several suitable and reliable Kusama validators, making Kusama Liquid Staking as decentralized as possible. This means that Ankr will not contribute to giving any party more influence over the Kusama network as the KSM will be spread over a wide variety of nodes. Ultimately, the end-goal is having Ankr governance decide on the target allocation to different validator nodes.
Contribute to the security of the KSM network
Staking with Kusama Liquid Staking allows you to play an important role in boosting the network’s security as a whole. Ankr’s Kusama staking system distributes staked tokens intelligently across the Kusama ecosystem to help the network achieve optimal decentralization. Diversity and decentralization of active validators both ensure the network remains as secure as possible.
Ankr Staking offers instant liquidity for your staked KSM, enabling you to connect your tokens with DeFi and create an opportunity to earn several other layers of rewards.