ankrETH on C14
One of the key innovations in the DeFi space over the past 18 months has been the rise of Liquid Staking Protocols, such as ankrETH. LSPs play an increasingly important role in the DeFi ecosystem, but there still remain substantial barriers to entry for new consumers.
Launched in early 2021, ankrETH has seen explosive growth as users increasingly understand the utility from these tokens. LSPs allow traders to capture the upside of staking ETH while not locking up their ETH for long periods of time. Ankr currently has over $106,413,036 in TVL locked across its different staking products with over 15,000 Stakers.
ankrETH is a reward bearing token whose price grows as the compounding rewards of ETH are staked in the protocol. As the ETH staked in the protocol grows, the value of the reward accrues to the ankrETH token. As of July 27th the redemption price of 1 ankrETH is now 1.1242 ETH.
What is Liquid Staking Ethereum? What is an Ethereum LSD?
According to EthereumStakingGuide.com, liquid staking is pooled staking of Ethereum. Pooled staking is combining your ETH with other investors’ ETH inside together to reach the required validator minimum of 32 ETH.
What are Liquid Staking Protocols?
Liquid staking protocols have emerged as innovative solutions to address the limitations and illiquidity associated with traditional staking in blockchain networks. In a typical staking setup, users lock their tokens for a specific period of time to participate in network consensus and earn rewards. However, this locked capital is illiquid, meaning it cannot be easily accessed or utilized for other purposes. Liquid staking protocols aim to unlock the value of staked tokens by creating derivative assets that represent users’ staked positions. These derivative assets, often referred to as “liquid staked tokens,” can be traded, lent, or used as collateral, providing users with additional flexibility and liquidity.
What Are the Rewards for Staking ETH with Ankr?
A snapshot of the estimated rewards on July 27th, for staking via Ankr is below.
Reducing Barriers to Obtaining ankrETH
C14’s integration of ankrETH helps lower the barriers of entry into ankrETH in several key ways.
- ) When gas prices are high, purchasing ankrETH through C14 can be cheaper than staking directly.
- ) In some jurisdictions staking by represent a taxable event, and purchasing ankrETH through C14 can be more tax efficient than staking existing ETH.
- ) For users wishing to hold ankrETH who don’t already have ETH, the total costs of obtaining ankrETH are much lower.
C14 looks forward to adding new LSPs over the coming months. Follow C14 on Medium and Twitter for more updates.
