Table of contents
- Give us a quick overview of Ankr as a DeFi infrastructure.
- Staking is great for investors to earn rewards on their assets, but Liquid Staking offers many more benefits to the user. In summary, you can explain what Liquid Staking is, why it is so revolutionary and what are the advantages of liquid staking over traditional staking.
- How can users approach Liquid Staking via Ankr?
- Users are rewarded in ankrETH. What does ankrETH represent and how is its value determined?
- What benefits does owning ankrETH bring to the user?
- We know that EigenLayer is a middleware protocol that allows re-recording. Please explain to us what EigenLayer’s Ethereum recovery platform is designed for and what benefits it brings to the user.
- How will Ankr use EigenLayer’s recovery platform?
- Ankr recently announced three new services to increase the security of its liquid staking service and provide its users with more functionality and transparency. Of particular interest is the ETH validator hub. Tell us more about this feature and how it addresses slashing as one of the key risks associated with liquid staking.
- What are Ankr’s plans for the future? Can we expect exciting and innovative strategies to improve the DeFi sector soon?
Renowned decentralized finance (DeFi) company Ankr spoke with Crypto Daily to give us an overview of its revolutionary Liquid Staking feature and discuss re-listing on the EigenLayer.
Crypto Daily is fortunate to have interviewed Tiago Pratas, DeFi leader at Ankr. Pratas gave us access to the nuances of Ankr’s groundbreaking Liquid Staking protocol and to discuss EigenLayers Ethereum recovery and security features.
Give us a quick overview of Ankr as a DeFi infrastructure.
“Ankr is a leading DeFi infrastructure company committed to making the decentralized world more accessible and user-friendly. We achieve this by providing a comprehensive Web3 infrastructure platform that suits developers, enterprises and end users. Ankr’s suite of services includes node hosting, staking, and developer-focused offerings such as RPC nodes and app chains. Our services are designed to be cost-effective, scalable and secure, making it easier for developers to build decentralized applications (DApps) and for end users to access and interact with the DeFi ecosystem. You’ve probably used some of our services without even knowing it, and we work with major DeFi projects like Aave, 1inch, SushiSwap, and several major L1s.
Staking is great for investors to earn rewards on their assets, but Liquid Staking offers many more benefits to the user. In summary, you can explain what Liquid Staking is, why it is so revolutionary and what are the advantages of liquid staking over traditional staking.
“Liquid Staking is a groundbreaking concept in the blockchain and DeFi space. Traditional staking involves locking your assets into a smart contract to secure a network and earn staking rewards. However, this process makes your assets illiquid, meaning you cannot easily use or trade them.
Liquid Staking, on the other hand, offers a more flexible approach. When you stake your assets, you will receive a token representing your staked assets, such as ankrETH. These tokens are tradable and can be used in various DeFi protocols, from providing liquidity to collateral for loans. The revolutionary aspect of Liquid Staking is that it combines the benefits of staking such as earning the staking rewards while participating and increasing Ethereum network security, with the benefits being more capital efficient, more flexible for stakers and easier to participate in the validation process . of Ethereum and gain access to the ‘risk-free rate’ in the form of staking rewards.”
How can users approach Liquid Staking via Ankr?
“Liquid Staking via Ankr is a simple process. Users can visit Ankr’s Liquid Staking platform, select the assets they want to stake, connect their cryptocurrency wallet and select the amount and stake! In return, users receive Liquid Staking Tokens such as ankrETH,ankrBNB, etc., which represent their staked assets. These tokens can be used on the DeFi platforms, providing liquidity and earning additional returns. The list of these DeFi options can be found on our DeFi dashboard.”
Users are rewarded in ankrETH. What does ankrETH represent and how is its value determined?
“ankrETH represents the Ethereum deposited on the Validators, with any staking rewards it accrued. Therefore, ankrETH is a reward token, meaning that the real value of 1 ankrETH token versus ETH increases over time as staking rewards accumulate. That is why the market price is always linked to the amount of Ethereum you can exchange per ankrETH and the Ethereum price.”
What benefits does owning ankrETH bring to the user?
“First, high APRs, as AnkrETH boasts one of the best APRs in the market, thanks to the efficiency of our node operation and MEV reward distribution. In addition, ankrETH provides additional liquidity and capital efficiency for your assets. Unlike traditional staking, ankrETH maintains liquidity, allowing users to access their assets when needed, while allowing you to participate in various DeFi protocols while still enjoying staking rewards. This is also meaningful because users still get exposure to Ethereum’s growth. As the price of Ethereum rises, so does the intrinsic value of ankrETH, offering users the potential for significant capital growth. Last but not least, knowing that they contribute to the network security of Ethereum, as by staking with Ankr, users actively contribute to the security and decentralization of the Ethereum network, further improving its robustness and reliability.”
We know that EigenLayer is a middleware protocol that allows re-recording. Please explain to us what EigenLayer’s Ethereum recovery platform is designed for and what benefits it brings to the user.
“EigenLayer allows users to reuse their ETH and extend Ethereum’s crypto-economic security to additional applications on the network. EigenLayer’s Ethereum recovery platform is designed to automate the process of withdrawing staking rewards for users, which provides several key benefits. It simplifies the compounding of wagering rewards by automatically reinvesting them, resulting in exponential growth of wagering rewards over time. This automation makes the process hassle-free and accessible even for those new to DeFi. Users benefit from maximum returns thanks to the compounding effect, potentially achieving higher returns compared to traditional staking or holding strategies. This could lead to multiple innovations built on top of EigenLayer. From Infracture products such as oracles, bridges or L2s to more yield-oriented products such as Liquid Staking tokens with higher yields.”
How will Ankr use EigenLayer’s recovery platform?
“We love innovation and pay close attention to all the new things happening in the market, especially when it comes to Liquid Staking! So far, Ankr has proposed the EigenLayer DAO to include ankrEtH, but we are also paying close attention to the liquid staking protocols that are built on top of that.”
Ankr recently announced three new services to increase the security of its liquid staking service and provide its users with more functionality and transparency. Of particular interest is the ETH validator hub. Tell us more about this feature and how it addresses slashing as one of the key risks associated with liquid staking.
“ETH Validator hub will be an open marketplace that will act as a transparent way for users to choose which nodes to delegate their assets to. Our focus will be on Ethereum, but will soon expand to other networks. This marketplace will provide users with greater versatility and empowerment over their assets, allowing them to select nodes that align with their individual risk assessments and APY objectives. In essence, this service provides a delegate to expand meeting for Ethereum stakers. Ankr places a strong emphasis on security and transparency, and the ETH Validator Hub is an important part of our efforts to address the risks associated with liquid asset staking while simultaneously introducing resume. This hub uses a rigorous selection process for validators, taking into account factors such as reputation and security measures. Slashing protection mechanisms are in place to minimize the risk of loss due to slash events. The ETH Validator Hub works with responsive governance, allowing the community to participate in decision-making, strengthening accountability and trust.”
What are Ankr’s plans for the future? Can we expect exciting and innovative strategies to improve the DeFi sector soon?
“Ankr’s vision for the future revolves around continued innovation and user-centric strategies to advance the web3 industry. We aim to develop innovative DeFi products and services, including expanding our liquid staking offering and providing core infrastructure to the web3 ecosystem. Our goal is to empower users by providing cutting-edge solutions that improve their crypto experience. We will continue to explore new avenues, partnerships and technologies to positively contribute to the ecosystem. Expect exciting developments as we work tirelessly to improve and innovate!”
Tiago Pratas is a seasoned cryptocurrency professional with expertise in blockchain and DeFi. As DeFi Lead at Ankr, he played a key role in increasing TVL from $65 million to over $180 million. With a strong crypto trading and research background, Tiago is an expert in blockchain technology, DeFi strategies and the broader crypto ecosystem.
Disclaimer: This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.