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Unstacking Feature for Liquid Staked Ethereum: Ankr’s Latest Innovation

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On April 18th, it was announced that Web3 infrastructure provider Ankr has now launched an Unstacking feature for Liquid Stacked Ethereum. Previously reported, on the morning of Ap

Unstacking Feature for Liquid Staked Ethereum: Ankr’s Latest Innovation

On April 18th, it was announced that Web3 infrastructure provider Ankr has now launched an Unstacking feature for Liquid Stacked Ethereum. Previously reported, on the morning of April 13th, Ethereum completed its Shanghai upgrade.

Ankr Launches Release of Pledge Function for Liquid Stacked Ethereum

Introduction

On April 18th, in a major breakthrough in the world of blockchain technology, Ankr announced the launch of its new “Unstacking” feature for Liquid Staked Ethereum. This innovation is expected to completely change the way people interact with cryptocurrencies, particularly Ethereum.

What is Liquid Staking?

Before we delve into Ankr’s Unstacking feature for Liquid Staked Ethereum, let’s first understand what Liquid Staking means. Liquid Staking, also known as Staked ETH or StETH, allows investors to earn staking rewards for their ether tokens without them being locked up or “stacked” like in traditional staking.
In traditional staking, investors put up their tokens as collateral for verifying transactions on the network. In return, these investors earn rewards, but the duration or the amount of rewards earned is directly influenced by the duration of the staking period. However, in Liquid Staking, investors can earn rewards without their tokens being locked up.

Ankr’s Unstacking feature

Ankr, a web3 infrastructure provider, has launched an Unstacking feature that enables users to unstake their StETH and in exchange, get a token named “aETH”. The aETH can be used for trading or liquidity providing, and will enable investors to earn rewards without their tokens being locked up.
This innovation by Ankr is expected to be a game changer, as it eliminates the need for investors to wait for their tokens to become liquid after staking duration ends. Investors can simply unstake their tokens and gain access to them whenever they want.

Benefits of Ankr’s Unstacking feature

Ankr’s Unstacking feature will have numerous benefits for investors, such as:

Flexibility of Withdrawals

Investors can unstake their tokens anytime without having to wait for the staking duration to end. This will give them more flexibility with respect to access to their tokens.

Increased Liquidity in the Token

The aETH that investors will receive in exchange for their StETH tokens can be used for trading or liquidity providing, thus increasing the liquidity in the token.

Better Reward Opportunities

The Unstacking feature enables investors to capitalize on better reward opportunities as they can unstake their tokens immediately in response to rewards fluctuations.

Reduction in Expenses

Unstacking eliminates the need for setting up complex market-making protocols or staking operations to be able to access staked tokens while benefitting from liquidity access.

Conclusion

The launch of Ankr’s Unstacking feature for Liquid Staked Ethereum is a significant breakthrough in the world of blockchain and cryptocurrency. Ankr’s innovation will offer immense benefits to investors by providing flexibility, liquidity, and better reward opportunities without locking up their tokens. This is an excellent opportunity for investors and traders to take advantage of the offerings Ankr has provided without the constraints of traditional staking.

FAQs

1. What is the difference between staking and liquid staking?

Staking involves locking up tokens as collateral for verifying transactions, while liquid staking allows investors to earn rewards for their tokens without them being locked up.

2. How does Ankr’s Unstacking feature work?

Ankr’s Unstacking feature enables users to unstake their StETH tokens and gain access to aETH tokens that can be used for trading or liquidity providing, thus increasing liquidity in the token.

3. What benefits does Ankr’s Unstacking feature offer?

Ankr’s Unstacking feature provides investors with flexibility, liquidity, better reward opportunities, and reduces expenses associated with traditional staking, while maintaining liquidity access for staked tokens.

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