Ankr Supports Fantom Liquid Staking
For Fantom ecosystem supporters, staking FTM assets is the perfect way to earn a higher APY on funds they would HODL anyway. However, many FTM holders notice that some DeFi platforms may offer a higher return than FTM staking.
Liquid staking gives them the best of both worlds – they can simultaneously earn staking rewards and participate in DeFi with the value of their staked FTM assets! All this is possible with instant liquidity to exit their FTM staking position at any time.
Fantom Staking, the status quo
The network requires that users stake FTM and choose an amount of time to lock their funds – the longer they are locked, the higher the percentage of rewards.
They can choose a minimum locking period of 14 days (4.71% APR) or lock FTM up to one year to earn a higher percentage (up to 14.4% APR).
How Fantom Liquid Staking by Ankr works
Ankr Earn allows users to stake more flexibly with Fantom Liquid Staking.
During the staking process, FTM is delegated to several validator nodes from Ankr, Fantom Foundation, and Millenium Club DAO. The Ankr Earn platform will then distribute the staked FTM to be locked across a few periods: 25% of FTM staked for 28 days, 25% for 56 days, 50% for up to 365 days.
This product architecture allows users to benefit from a higher yield than simply staking without locking for a specific period of time.
This method of staking and locking FTM enables a liquidity window for Ankr Earn users to unstake freely every 28 days. An unstake fee will start to be applied after a certain percentage threshold of unstake amount requests are made in comparison of available staked FTM maturing in up to 28 days. The fee will incentivize users to sell aFTMb in a DEX (e.g. Curve) when appropriate.
However, if the amount of FTM being unstaked looks like it will be more than the staked FTM maturing in 28 days, an unstake fee will start to take effect to encourage users to rather sell on a DEX (e.g., aFTMb/wFTM LP on Curve.fi) instead of unstaking.
After users stake their FTM, they receive back aFTMb tokens (on a 1:1 basis with their staked FTM) directly to their independent wallets. This is a reward-earning token on Fantom network that distributes staking rewards to the wallet holding aFTMb daily.
In other words, your wallet’s aFTMb balance will increase daily to reflect your staking rewards.
Making Fantom Staking More Accessible & Rewarding
Fantom Liquid Staking is an enhanced method of staking on the Fantom blockchain. Staking on Proof-of-Stake networks normally means you would need to lock your tokens up with a validator node. This isn’t ideal as your assets are now “illiquid” or unavailable to spend or earn in other places. Illiquidity is sometimes the price paid for making an APR with some financial strategies, but thanks to Fantom Liquid Staking, it’s totally avoidable.
FTM staking now as easy as a swap
Receive an easier staking experience with no technical knowledge necessary. Liquid Staking makes staking as easy as a swap: swap FTM for aFTMb on a DEX or stake FTM on Ankr Earn to mint new aFTMb. Users need only hold the reward-earning aFTMb token in their independent wallets to see the balance grow daily to reflect staking rewards.
Instant liquidity for staked FTM
Using Ankr Earn is the best way to stake FTM as you can access instant liquidity in the form of the aFTMb token. Avoiding locking your tokens up with the Fantom network is a big advantage — it allows you to use the value of your staked tokens to potentially earn multiple layers of rewards on DeFi platforms and expand your ROI.
Access to more DeFi use cases
Fantom liquid staking gives users the flexibility to earn additional rewards on staked FTM on both Ethereum and Fantom DEXs. Users can participate in liquidity mining, farming LP rewards, staking farmed tokens, vaults, lending, and more. Read more about all potential DeFi opportunities here.
Supporting Fantom Ecosystem
Removing Barriers to Staking
Ankr’s liquid staking creates an even easier staking experience so more users can get involved right away while skipping more in-depth or technical delegation processes.
Enhancing Decentralization
Ankr’s Fantom Liquid Staking will not be using only Ankr validator nodes to stake the FTM from users. Ankr Earn will select several suitable and reliable Fantom validators, making Fantom Liquid Staking more decentralized one validator at a time.
Improving Security
Staking with Fantom Liquid Staking allows you to play an important role in boosting the network’s security as a whole. Ankr’s Fantom staking system distributes staked tokens intelligently across the Fantom ecosystem to help the network achieve optimal decentralization. Diversity and decentralization of active validators both ensure the network remains as secure as possible.
