Ankr: Growing Liquidity on Fantom
Liquid staking plays a vital role in any proof-of-stake network to optimize and unlock liquidity for its users. On Fantom, Ankr offers liquid staking to Fantom users in the form of ankrFTM as part of its mission to make the decentralized world more accessible and user-friendly.
Ankr’s liquid staking solution on Fantom quickly has become a popular way for users to keep the liquidity of their staked assets.
In this article, we will explore Ankr’s move to Fantom and how this will benefit users of the Fantom ecosystem.
What is Ankr?
Ankr is a blockchain infrastructure company that provides Web3 solutions for developers, enterprises, and end-users. Ankr’s mission is to create an accessible and user-friendly decentralized world, and it does this by providing a full-stack Web3 infrastructure platform that makes it easy for anyone to build, deploy, and use blockchain applications.
Ankr’s platform offers a wide range of services, including liquid staking, node hosting, and many developer-focused services, such as RPC nodes and app chains. The company’s services are designed to be affordable, scalable, and secure, making it easy for developers to build decentralized applications and for end-users to access them.
What is liquid staking?
Liquid staking is a relatively new concept in the blockchain world. It allows users to earn rewards on their staked assets without sacrificing liquidity. When users stake their assets normally, they are locking them away, which makes them illiquid.
However, liquid staking offers a more flexible approach to staking, as users receive a token with an equal value to their staked assets, which they can use similarly to the underlying staked token.
This allows users to earn staking rewards while still having access to their liquidity, which is beneficial for both users as their liquidity is retained and for the network as it encourages users to participate in staking.
Additionally, as their liquidity is retained within the network, users can enhance their capital efficiency by using their liquid staking tokens in other protocols. This allows them to lend, borrow, stake, and provide liquidity, which increases their returns in addition to the base interest rate received from staking the underlying FTM token with Ankr.
With Ankr’s liquid staking solution on Fantom, users receive ankrFTM tokens in exchange for staking their FTM. The ankrFTM token maintains an equal value to FTM, enabling its use across various DeFi protocols, much like the actual FTM token.
Ankr’s move to Fantom
Ankr’s move to Fantom provides users with an accessible and user-friendly liquid staking platform, and its current focus is increasing its liquid staking TVL on Fantom.
ankrFTM, the liquid staking token of Ankr on Fantom, is growing in popularity already. The token is used in several liquidity pools to which users can provide liquidity to earn rewards.
For example, the Beethoven X pool has around $1.1 million in liquidity with an APY of around 9% at the time of writing.
By staking your FTM through Ankr and providing liquidity with your ankrFTM, you earn both staking rewards and trading rewards.
Additionally, Ankr has enabled the bridging of ankrETH to Fantom, allowing users to stake their assets on Ethereum and bridge them to Fantom to earn rewards in FTM. To bridge ankrETH to Fantom, use the Ankr Bridge.
How to use Ankr for liquid staking on Fantom
To use liquid staking on Ankr, follow these steps:
- Head to Ankr Staking and connect your wallet
- Choose how many FTM to liquid stake
- Click ‘Get ankrFTM’ and submit the transaction
You will receive ankrFTM in return and your staked FTM will earn an APY as shown further down the page.
Alternatively, you can use a DEX like Beethoven X to swap your FTM to ankrFTM, which uses the same liquidity pool as mentioned further above. Make sure to determine which of these two options provides you with the highest quantity of ankrFTM before proceeding.
Once you have ankrFTM, head to Ankr’s DeFi Aggregator, which provides an overview of the DeFi platforms on which you can use ankrFTM to earn yield.
Follow Ankr on Twitter for further updates regarding their products and services on Fantom!