Ankr Staking offers Fantom token holders the opportunity to stake FTM and in return TO claim Fantom Liquid Staking tokens. The Goal is to enable easy access to Web3 and increase efficiency in blockchain infrastructures.
What is (FTM) staking?
Fantom (FTM) staking serves as a means for users to garner rewards while contributing to the security and validation of transactions on the Fantom network. This involves committing their FTM to validator nodes through the staking platform. Fantom, functioning as a Layer 1 blockchain, is crafted to deliver swift, secure, and scalable solutions for decentralized applications (dApps) and enterprise use cases.
How does Fantom(FTM) staking work on Ankr Staking?
Ankr Staking extends an opportunity for Fantom token holders to stake FTM and, in turn, obtain the Fantom Liquid Staking token (ankrFTM). This token operates as a reward-bearing token, signifying that its fair value, relative to FTM, appreciates over time due to accumulated staking rewards. It also provides immediate liquidity for staked FTM, facilitating integration with DeFi platforms for additional layers of rewards. Further insights can be explored by referring to the documentation.
Claiming Fantom (FTM) Staking Rewards
The ankrFTM token, as a reward-bearing token, maintains a constant quantity upon staking. Rather than increasing in quantity, it appreciates in value relative to FTM. Consequently, the redemption price of 1 ankrFTM grows over time due to reward accumulation. This allows users to unstake or “redeem” their ankrFTM for more FTM than originally contributed.
What is the minimum staking period of time for Fantom (FTM)?
Ankr Staking imposes no minimum staking period for Fantom, providing users the flexibility to choose to unstake at any time. However, the duration for unstaking varies based on the amount intended for unstaking. Smaller amounts, such as 1 FTM, are likely to align with the current validator’s lock-up period, resulting in funds being released in 1 to 35 days. Larger amounts, like 10000 FTM, may require additional time, contingent on Ankr’s funds to fulfill the unstake request.
Benefits of Staking FTM with Ankr
Selecting Ankr Staking became the most efficient approach for FTM staking, providing immediate liquidity through the ankrFTM token. This circumvents the need to lock up tokens within the Fantom network, enabling users to leverage the value of staked tokens for multiple rewards on DeFi platforms, thereby enhancing the potential return on investment. Opportunities such as yield farming, arbitrage trading, lending, and more become viable by utilizing the value of staked assets.
Liquid Staking, addressing the capital inefficiency challenges of (Nominated) Proof-of-Stake networks, offers avenues for additional rewards on staked FTM. Key components of Fantom Liquid Staking include:
-Opportunities for liquidity mining, achieved by providing liquidity to pools in decentralized exchanges.
-Farming rewards for liquidity providers, presenting diverse yield farming strategies for users contributing to liquidity pools. This includes earning a share of trading fees and governance tokens. These newly minted LP tokens can be employed to generate an additional layer of earnings.
-Staking rewards on farmed tokens, allowing users to reinvest their farmed LP tokens into additional staking opportunities. This becomes a highly repeatable process as layers of rewards from farming and staking accumulate rapidly.
-Yield aggregators and vaults, streamlining yield farming rewards and facilitating compounding returns with minimal user effort. This proves to be an effective method for maximizing passive income strategies.
-Increased trading opportunities, facilitated by the elastic supply nature of ankrFTM. This implies the potential to purchase ankrFTM at a discount on a Decentralized Exchange and redeem it (unstake it) on the staking platform to reclaim its fair value within a maximum period of 35 days (the Fantom Liquid Staking unbonding period).
In the event of opting to unstake FTM, users can select the “unstake” option at their convenience through the Ankr Staking platform. Subsequently, users need to wait for a variable period before the unstaked funds are released to their wallets. The duration depends on the amount intended for unstaking and ranges from 1 day up to 35 days or more.
The explanation is straightforward: the unstake request is fulfilled based on the current rewards for all stakes claimed from a validator at the end of the recurring validator’s lock-up period. Thus, unstaking 1 FTM, a relatively smaller amount, is likely to align with the current payout capacity, resulting in funds being released within 1 to 35 days. Conversely, unstaking 10000 FTM, a larger amount, may be released in parts, with each part being released at the conclusion of the lock-up period. As Total Value Locked (TVL) increases, so does the payout capacity, making it challenging to determine the exact amount released in each part. However, a conservative estimate would be 100–500 FTM and more.
Lending and borrowing
ankrFTM tokens enable users to borrow against their ankrFTM assets in exchange for assets like FTM. These can be restaked or used for additional earning strategies. Alternatively, users can lend their ankrFTM assets, receiving interest payments from borrowers.
No technical expertise required
Experience a simplified staking process without the need for technical expertise. Liquid Staking streamlines staking to a simple swap: exchanging FTM for the reward-bearing ankrFTM token.
Fantom Liquid Staking, facilitated by Ankr Staking, ensures decentralization by selecting multiple suitable and reliable Fantom validators. This approach enhances decentralization by preventing any single party from exerting excessive influence over the Fantom network. The distribution of FTM across a diverse range of nodes contributes to this decentralization. Ultimately, the objective is for Ankr governance to determine the target allocation to different validator nodes.