Liquidity staking on Fantom enables users to release Liquidity from staked assets, unlocking fresh opportunities within DeFi. Usually, when users stake FTM on Fantom, they move their tokens to support the network’s operation and security in return for monetary rewards. However, this renders users FTM non-Liquidity, preventing their use for other DeFi opportunities until users can unstake them. On Fantom, two protocols aim to rectify this constraint: Ankr Protocol and Beethoven X. Discover below how to use Ankr and how to engage in Liquidity staking on Fantom.
What is Liquidity staking on Fantom?
Liquidity staking addresses the constraints of conventional staking by entrusting users’ tokens to a validator and then generating synthetic tokens representing the staked assets on a 1:1 basis. Users can exchange and utilize these tokens freely in DeFi protocols for lending, borrowing, or earning additional yield, while the original assets remain staked and continue earning staking rewards.
For instance, if users stake 100 FTM through one of the Liquidity staking providers below, they acquire the equivalent value in their FTM Liquidity staking tokens, which can be utilized in any DeFi application supporting them.
Liquidity staking on Fantom not only boosts the utility of its native token but also enriches its DeFi ecosystem, rendering it more appealing to users aiming to maximize asset productivity. This mechanism encourages greater capital efficiency within the network, enabling users to participate in securing Fantom while simultaneously participating in other DeFi activities without having to make a choice.
Ankr Protocol: How to engage in Liquidity staking?
Ankr provides Liquidity staking on Fantom through its ankrFTM token. Follow these steps to participate in Liquidity staking on Fantom using Ankr:
Navigate to Ankr’s FTM Liquidity Staking page
Choose the amount of FTM users intend to stake
Select Get ankrFTM and confirm in users’ wallet
Users have now staked their FTM through Ankr and obtained an equivalent value in ankrFTM tokens! These tokens are reward-bearing, meaning their quantity is stable, but they appreciate in value, with their redemption ratio increasing daily to reflect Fantom staking rewards. The tokens can now also be utilized across various DeFi applications while they continue to earn staking rewards from the Fantom network.
How to unstake Fantom (FTM) on Ankr?
To unstake users’ FTM, proceed to the Ankr Staking dashboard, navigate to the Liquidity staking section, and click the minus symbol beside the ankrFTM token. However, please acknowledge the unstaking period indicated above the Unstake button. As an alternative to unstaking, users can swap from ankrFTM to FTM on various DEXs.
15% of the staking rewards users earn are allocated to the validator on which their underlying FTM is staked, and then Ankr levies a 15% technical service fee from the remaining rewards users receive. Find out more here about Liquidity staking on Ankr.
Where can users utilize ankrFTM?
With ankrFTM, users can contribute Liquidity to the following pairs and earn rewards (at their own risk):
Beethoven X: Ankr Fantom Liquidity Mosaic or Ankr Fantom Liquidity Ocean
Equalizer Exchange: ankrETH-ankrFTM.
At The End
Ankr Staking provides Fantom token holders with an opportunity to stake the FTM tokens in return claim Fantom Liquid Staking tokens, ankrFTM (ex-aFTMc). However, ankrFTM is considered as a reward-bearing token, which means that the fair value of 1 ankrFTM token vs FTm increases over the time as staking rewards are accumulated inside the token.
