Ankr's liquid staking provides a new way for Ethereum (ETH) holders to stake. ETH stakers now will have several additional earning options available to them on various DeFi protocols.
Ankr's ETH liquid staking enables stakers to mint new tokens such as aETHb and aETHc that they can immediately trade or use for the purpose of increasing earnings on DeFi platforms. This way, stakers avoid locking up the value of their ETH so they can earn in more places simultaneously.
Stake nowLearn about ETH liquid staking and understand how it works
What is ETH?
Where can I buy ETH?
About Ethereum 2.0
According to the Ethereum community, Ethereum 2.0 was born out of making improvements and enhancements to the original Ethereum Proof-of-Work network.
The aim is to scale the Ethereum network and, at the same time, not compromise security and decentralization. What differentiates ETH 1.0 from ETH 2.0 is the consensus mechanism. Consensus mechanisms ensure that all nodes on the network synchronize with one another and can come to an agreement on transactions. The ETH 1.0 consensus mechanism used is called Proof-of-Work (PoW), while ETH 2.0 uses the Proof-of-Stake (POS).
In Proof-of-Work, miners use server processing power to solve mathematical puzzles which in turn is used to verify new transactions on the block. In Proof-of-Stake, instead of the miners trying to solve complex mathematical puzzles, validator nodes are responsible for verifying transactions, but require a significant amount of crypto delegated or “locked” with them. This incentivizes proper behavior while preventing any network manipulation or attacks.
What is ETH staking?
As explained earlier, ETH 2.0 uses the Proof-of-Stake consensus mechanism. Validators who wish to process transactions on Ethereum need to lock up 32 ETH so they can be randomly picked by the protocol at particular intervals to add a new block on the ETH network. Validators will seek the help of stakers to lock up as much ETH as possible with their validator node to improve their odds of selection. Staking is useful for the Ethereum network because of the following reasons.
01.
The more validators, the better the security for the network
Proof-of-Stake allows more parties to be involved in the consensus and computing work required to secure blockchain networks. Incentivizing validators and stakers with ETH grows the network and provides resistance against events such as 51% attacks, further increasing security.
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02.
It's more sustainable
To become a validator you don't need complex, energy-consuming, and capital-intensive server power. The Proof-of-Stake mechanism doesn’t require the extreme amounts of energy needed to secure Proof-of-Work chains like Bitcoin. This is much more sustainable for the environment.
Start Staking03.
It's more accessible
In order to earn mining rewards, you need access to large amounts of computing power and equipment. With staking, anyone can earn rewards for securing networks by staking in a few clicks on platforms like Ankr Staking.
Start StakingHow to stake your ETH with Ankr Earn?
Ankr provides a staking solution that makes earning with your ETH easy.
To get started, fund your wallet such as MetaMask with ETH. After successfully doing that, head over to Ankr Staking and select how much ETH you would like to stake.
Using Ankr to stake ETH helps to solve the complexity of staking directly to validators on the Ethereum network. You will not need any in-depth knowledge, and you won't need to go through any complex delegation process. Follow these processes to stake ETH on Ankr Staking!
01.
To earn staking rewards, stake as little as 0.5 ETH
Ankr's ETH liquid staking solution makes ETH staking accessible for anyone. With a minimum requirement of just 0.5 ETH, you can stake. You have the opportunity to earn the same APY as whale stakers without needing large amounts of ETH to get started.
02.
The rewards will be distributed right to your wallet
Hold your ETH in your independent crypto wallet and claim your staking rewards automatically. On the Ankr Staking platform, you are allowed to unstake your ETH at any time by selecting the “unstake.” option.
03.
You assist in enhancing the security of the entire network by staking
When you stake ETH through Ankr Staking, you are directly contributing to the security and operations of the entire Ethereum network.
ETH liquid staking
ETH liquid staking is designed to give users access to more ways to increase their reward-earning potential.
Liquid staking provides new possibilities to boost your overall return on investment from your ETH assets. ETH liquid staking is a method of staking on Ethereum. During the staking process, your funds or tokens are locked up with a validator node. As a result of this, your ETH becomes “illiquid” – that is, it is not readily available to be sold, traded, or contributed to liquidity pools on other platforms. Thankfully, Ankr fixes this with ETH liquid staking, thereby making illiquidity avoidable.
How does ETH liquid staking on Ankr work?
What Are aETHc and aETHb?
These are liquid staking tokens that deliver your staking rewards automatically. When you stake ETH on Ankr Staking, you can choose either token.
aETHc
Reward-bearing token
These tokens increase in value over time to reflect your staking rewards from the Ethereum 2.0 network. Over time, 1 aETHc is expected to grow in ETH value, as it contains the principal stake plus staking rewards.
In other words, the number of aETHc tokens in your wallet won’t increase, but their value will.
aETHb
Reward-bearing token
These tokens increase in number daily to reflect your staking rewards. The fair value of aETHb is equal to ETH.
The balance of aETHb holders grows on a daily basis after every rebase, which means that the fair value of 1 aETHb is always equal to 1 ETH. Every day, Ankr Earn receives ETH staking rewards into the ETH2 staking pool, which are then airdropped to our stakers as aETHb. As a result, the amount of aETHb you hold in your wallet will automatically increase with every rebase.
Advantages of ETH liquid staking over normal staking
One of the main advantages of liquid staking is that it allows users to provide liquid staking tokens like aETHb and aETHc to DeFi to generate many more possible streams of passive income. So, users can decide to lend, contribute to liquidity pools, yield farm, swap, and perform other strategies on decentralized finance platforms. Here is a list of the benefit to enjoy when you perform ETH liquid staking on Ankr Staking.
01.Instant Liquidity
Ankr Staking is one of the best platforms to use for staking ETH. One advantage is that as a user, you gain access to instant liquidity. The liquidity is gained in the form of the aETHb or aETHc tokens that unlock the value of your staked ETH. Ankr Earn allows you to optimize the value of your staked tokens to earn more rewards on decentralized finance platforms thus multiplying your Return On Investment potential.
02.Boosted Yields
ETH liquid staking allows users to take advantage of the following:
Liquidity mining opportunities. Stakers can provide liquidity to pools on DEXs like Curve Finance in return for LP rewards.
Liquidity pool providers have access to farming rewards. 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. Apart from getting rewards from farming, you can reinvest your farmed LP (liquidity pool) tokens in order to utilize other staking opportunities.
Yield aggregators/vaults. Yield farming rewards can be automated via vaults. This will provide compounding returns with minimal effort from users. This is another brilliant method for passive income generation.
More trading opportunities. Purchase aETHb or aETHc at a discount on a DEX and unstake them on the Ankr Staking platform at fair value to make a fast profit.
03.Help to secure the Ethereum network
Staking will help improve the security of the entire Ethereum network. Diversity and decentralization of active validators both ensure the network remains as secure as possible.
04.Can stake with little or no technical knowledge
Users are able to stake on Ankr Staking with no technical knowledge. Liquid staking can be done by anyone.
05.Reinforce and strengthen decentralization
The good thing about the ETH liquid staking on Ankr Staking is that it uses diverse validator nodes to stake the ETH from users. Our platform will choose reliable ETH validators out of various suitable options, thus making the system as decentralized as possible.