- Liquid Staking platforms have been gaining significant traction lately.
- Ankr is a formidable force in the Liquid Staking industry.
- Ankr provides insights into how it attracts investors, challenges competitors, and maintains decentralization.
Cryptocurrency projects are adopting the Proof-of-Stake consensus protocol to reduce their dependence on expensive hardware. While the shift is good for the environment, it can be limiting. Users must lock vast amounts of their tokens for staking, restricting them from delving into other opportunities within the crypto ecosystem.
To address this issue, Liquid Staking emerged as a lucrative solution. The mechanism allowed users to spend and lock their tokens, providing them with the freedom that the crypto space promotes. Among the leading platforms offering Liquid Staking, Ankr stands out as a formidable contender, delivering some of the highest yields in the industry.
DailyCoin had the opportunity to interview Ankr’s DeFi Lead, Tiago Pratas, to gain insights into their staking products and understand how they set themselves apart from other Liquid Staking platforms.
Traditional Staking and Ankr’s Liquid Staking Compared
How does Ankr’s liquid staking compare to traditional staking?
Ankr’s liquid staking stands out from traditional staking in several significant ways. First of all, it offers liquidity and flexibility, allowing users to stake their assets while maintaining the ability to access and use them whenever needed. This feature reduces the opportunity cost of staking, increases the capital efficiency of your Ethereum, and provides greater convenience to users.
Second, Ankr Staking provides cross-chain opportunities, supporting multiple chains like Ethereum, BNB Chain, Arbitrum, Fantom, and more. Users can also bridge their ankrETH tokens to various other chains, enabling them to explore new staking opportunities seamlessly. In contrast, traditional staking is typically limited to staking within a single blockchain ecosystem, restricting users’ options.
Finally, Ankr Staking boasts enhanced yields and a market-leading cap for certain staking options like BNB and ETH Liquid Staking. This means that users have the potential to earn higher rewards compared to some traditional staking platforms that may offer lower APYs or have limited staking options. These advantages make Ankr’s liquid staking platform attractive for investors seeking flexibility, diverse opportunities, and competitive rewards.
In a recent interview, Ankr shared that it would transform the concept of staking by introducing liquidity to traditionally illiquid stake assets. Can you elaborate on what assets users can stake, and is the service limited to specific tokens?
Ankr Staking’s platform enables users to stake a variety of assets, including but not limited to Ethereum (ETH), Binance Coin (BNB), Fantom (FTM), and Avalanche (AVAX). The service is not limited to specific tokens as we continue expanding our offerings to support staking on multiple chains. Users can enjoy the flexibility of staking these assets while maintaining liquidity, which sets Ankr’s liquid staking apart from traditional staking methods.
How Ankr Maintains Decentralization
Liquid staking is known to have a lot of centralization risks compared to traditional staking. In traditional staking, users directly delegate their tokens to a validator, fostering a distributed network of validators and promoting decentralization.
However, in liquid staking, users delegate their tokens to a third-party provider who holds custody of their staked assets. The lack of direct control over stake assets in liquid staking can raise concerns.
To address these concerns and ensure decentralization, we approached Ankr to shed light on their approach.
Decentralization is at the ethos of staking. With that in mind, how does Anker’s staking service remain decentralized?
Ankr Staking employs several methods to enhance decentralization and ensure a secure staking service. In our Ethereum Validator Hub, our platform will integrate Distributed Validator Technology (DVT), distributing validation responsibilities among multiple validators instead of relying on a single centralized entity. This reduces centralization concerns and prevents any single validator from having excessive power over the network.
In addition to DVT, Ankr’s commitment to omnichain liquid staking allows users to stake their assets on various blockchain networks. This decentralizes control and influence over the staking process, as it operates across different ecosystems, making it less susceptible to centralization.
Also, Ankr Staking supports interoperability between different chains, enabling users to move their assets seamlessly across networks. This further promotes decentralization, as users can choose the networks that align with their preferences, contributing to a more distributed staking landscape.
By implementing these features and technologies, Ankr Staking aims to create a decentralized and secure staking environment, empowering users to actively participate in securing the network while earning rewards.
Can you tell us about Ankr Distributed Validator Technology (DVT) and how it reduces centralization concerns?
Ankr Distributed Validator Technology (DVT) is a cutting-edge approach utilized by Ankr Staking to enhance decentralization within its staking service. DVT involves distributing the responsibility of transaction validation among multiple validators rather than relying on a single centralized entity. By doing so, DVT reduces centralization concerns by preventing a concentration of power and influence in the hands of a few validators and decreases the risk of slashing. This decentralized validation process ensures the network’s security and resilience, as no single validator can manipulate or control the staking process.
How Ankr Stands Out from Competitors
Liquid staking is highly competitive, with providers like Lido Finance, Rocketpool, and Stakewise leading the flock. So, standing out as an upcoming platform can be challenging. To gain insights into their unique value proposition and appeal to investors, we delved into Ankr’s approach.
In terms of staking options and yields, what differentiates Ankr from other Liquid Staking platforms?
Ankr Staking sets itself apart from other Liquid Staking platforms through several key differentiators:
a) Diverse Staking Options: Ankr Staking supports a wide array of staking options, allowing users to participate in liquid staking across multiple chains, including Ethereum, BNB, FTM, AVAX, and more. This diverse range of staking opportunities offers users the flexibility to choose the assets and chains that best suit their preferences and risk tolerance.
b) Scalable Yields: Ankr Staking takes pride in offering scalable yields to its users. By leveraging its market-leading cap for BNB Liquid Staking and providing one of the highest APYs for ETH Liquid Staking, Ankr aims to provide attractive and competitive rewards to stakers.
c) Interoperability: The ability to bridge ankrETH tokens to various chains like BNB Chain, Fantom, Avalanche, Polygon zkEVM, and Arbitrum adds an extra layer of versatility. This interoperability allows users to take advantage of different blockchain ecosystems while enjoying the benefits of liquid staking.
What methodology does Ankr use to ensure that it provides the highest yield in the market?
Ankr Staking ensures the highest yield in the market through a combination of strategies. We invest in advanced infrastructure and technology, minimizing downtime and maximizing uptime to optimize staking processes, ultimately maximizing the overall yield for stakers. We also partake in MEV operations that we distribute to our stakers, allowing them to receive an additional yield on top of the staking rewards.
Additionally, Ankr conducts thorough market research and analysis, identifying the most rewarding staking opportunities and integrations available in the most different protocols. This approach allows us to further boost the DeFi composability of our tokens, increase their capital efficiency and offer competitive yields on top of our liquid staking tokens to our users, staying ahead in the dynamic crypto market and providing different sustainable yield opportunities and use cases with the most different kinds of partnerships.
How does Ankr’s staking service ensure that its yields are accurate and scalable?
Ankr’s staking service ensures accurate and scalable yields through robust monitoring, automation, and optimization. Real-time monitoring tools track staking performance, promptly identifying any discrepancies or issues. By automating various processes, Ankr efficiently manages staking operations, reducing the likelihood of human errors and ensuring accurate yield distribution. Additionally, our platform invests in scalable infrastructure to accommodate increasing demand and staking activities without compromising performance or yield calculations. By combining these measures, Ankr aims to provide users with reliable, accurate, and scalable yields on their staked assets and be the easiest path to the biggest source of yield in the market: staking rewards.
On the Flipside
- Competitor Staking platforms LIDO, Rocket Pool (RPL), and Stakewise (SWISE) are all up around 100% since the start of the year.
Why This Matters
Liquid staking is emerging as a transformative trend in the crypto ecosystem. Ankr is becoming a formidable force in the sector as it effortlessly combines the benefits of staking with the liquidity of tradable assets, opening up many opportunities for users to maximize their yields.
Read the ultimate guide to Liquid Staking:
What is Staking?