Ethereum 2.0 Staking With Instant Liquidity! - Ankr
Hey DEFI TIMES community,
Stkr is a simple way to stake your ETH, even though you don’t possess more than 32 ETH. It’s a decentralized staking service provided by Ankr!
Today’s guest article explains how Ankr works and how you can use it to participate in Ethereum’s decentralized consensus without running your own node!
That’s how the little guys win! Decentralized staking is the future!
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Ankr — One-Click Blockchain Infrastructure + Ethereum 2.0 Staking With Instant Liquidity!
Ankr is a company that provides Web3 infrastructure for the easy, accessible, and affordable deployment of blockchain nodes and decentralized staking infrastructure. Its primary aim is to lower the entry barrier for all stakeholders — enthusiasts, enterprises, and developers — to contribute to blockchain ecosystems.
Ankr’s product line includes:
One-click solutions for staking nodes with reward-earning possibilities;
Web3 products with instant API access to major blockchain and DeFi protocols;
Turnkey infrastructure solutions for blockchain native enterprises, such as cryptocurrency exchanges, staking platforms, data analytics providers, and more;
Stkr, a Decentralized Ethereum 2.0 staking, and instant liquidity platform.
Stkr — ETH2 staking, democratized
Currently, there are two major problems with Ethereum 2.0 staking. First, the 32 ETH minimum requirement prohibits a lot of people from accessing the activity due to the high cost (around 20, 790 USD at the time of writing).
Secondly, even if a user has enough ETH and chooses to stake them in the deposit contract (and has the required knowledge to run a validator), they will not be able to move their rewards until transactions are enabled on the platform. This means that once staked, their assets will become illiquid for an indefinite amount of time.
This is where Stkr comes into play.
By integrating elements from traditional staking with non-custodial management, Micropools, instant liquidity, and decentralized governance, Stkr aims to help its users unlock rewards and liquidity for ETH staking, making it more accessible and efficient for everyone.
MicroPools and aETH-enabled liquidity
Stkr aims to address the liquidity issue with the provision of aETH — a synthetic asset that acts as a liquidity bridge between staked Ethereum 2.0 and the regular Ethereum network. Put simply, even as you stake your ETH and earn rewards, you will still retain the ability to sell your stake at any time you wish — all you need is a minimum of 0.5 ETH to deposit!
The ETH you deposit is then placed into one of Stkr’s proprietary Micropools. This allows users to contribute smaller amounts of ETH towards a Validator, and keep their funds safe from slashing rewards through Stkr’s provider insurance fund.
Upon staking your ETH, you will receive an amount of aETH in return. The aETH:ETH ratio will initially be set at 1:1, but will decrease over time because aETH is a bond-like asset that represents the staked ETH plus any future staking rewards.
For more details on aETH, you can check out the guide here.
Individuals with a little more ETH on hand might also be curious to learn about additional opportunities that can maximize their rewards.
In the Stkr ecosystem, the allocation of staking rewards is based on the different roles one may take on in the platform.
Users can either become:
· A staker to earn staking rewards,
· A node provider running Ethereum 2.0 nodes to earn staking rewards and platform fees, or
· A governor to be rewarded for helping ensure the long-term sustainability of the platform.
All rewards on Stkr are driven by rewards received from the Ethereum 2.0 network. Stakers will receive 85% of the staking rewards, proportional to their stake; while 15% of the staking rewards will be distributed to node providers. Governors, in turn, will become part of the governance board after acquiring a substantial stake of ANKR tokens.
Give staking a go!
The Stkr platform has been live since December 1. The launch itself kicked off with a bang, with 175 active validators immediately jumping in to stake (there are currently over 800 stakers).
With Stkr adding liquidity for aETH on Uniswap (and other pools soon), it seems to be a good time for giving ETH2 a go — regardless of the role you choose to pick, Stkr-enabled staking provides plenty of opportunities to increase your ETH funds.
All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.