#Benefits of Liquid Restaking

[intelisync]

2024 Guide to Liquid Restaking: Everything Beginners Should Know

The advent of liquid restaking is significantly altering the dynamics of the DeFi ecosystem by allowing stakers to reallocate their assets across multiple protocols without the need to un-stake. This innovative approach enhances both liquidity and flexibility, enabling users to maximize their staking rewards by participating in several staking opportunities simultaneously. By diversifying staking activities, liquid restaking mitigates risks associated with exposure to a single protocol and enhances overall security. It also improves liquidity, making it easier for users to trade and transfer their restaked assets, a flexibility not afforded by traditional staking methods.

Liquid restaking's seamless integration with DeFi platforms facilitates the use of staked assets in various financial products, thereby opening up a plethora of innovative use cases, such as collateralized lending and synthetic asset creation. This integration supports the decentralization ethos of blockchain technology by allowing more participants to engage in staking without the constraints of locked assets. As the DeFi sector continues to evolve, liquid restaking is poised to become a foundational component, driving greater innovation and user participation.

EigenLayer exemplifies the benefits of liquid restaking by enabling users to maximize their staking rewards while securing multiple blockchains. This approach not only enhances capital efficiency but also fosters new opportunities within the DeFi space.

For those looking to leverage these advantages, Intellisync provides advanced liquid restaking solutions, ensuring your assets remain accessible and continuously productive. Join the Intellisync revolution today and optimize Learn more....

[blockinsider]

SSV Network Partners with Ether.fi to Boost Decentralized Restaking through Learn & Earn Initiative

Key Points

SSV Network DAO and Ether.fi have initiated a Learn & Earn campaign to promote decentralized Ethereum restaking.

The campaign offers a $50,000 ETHFI prize pool and aims to educate participants about Distributed Validator Technology (DVT).

SSV Network DAO and Ether.fi are collaborating to launch a Learn & Earn campaign on the Galxe platform. The aim of this initiative is to educate community members about the benefits of Distributed Validator Technology (DVT) and the significance of decentralizing Ethereum’s base layer.

Participants of this campaign have the opportunity to earn a portion of a $50,000 ETHFI prize pool. 150 winners will be chosen randomly. Additionally, all users will have the opportunity to earn points as part of Ether.fi’s Season 3 incentive program.

The Campaign and Its Impact

The campaign is scheduled to run for two weeks. It aims to increase engagement and activities while educating participants about the role of DVT in powering the SSV network and Ether.fi’s restaking operations. Those who participate in the Learn & Earn campaign can earn points by familiarizing themselves with SSV’s role in decentralizing Ether.fi’s non-custodial protocol.

Ether.fi has achieved significant milestones since its inception. The liquid restaking firm has over 6,500 validators operating on the SSV Network, making it a leading adopter of this open-source staking technology. It has also managed to stake more than $4.5 billion in ETH, and its ETHFI token has become a well-known DeFi token.

SSV Network’s Growth

The SSV network has been experiencing consistent growth since its mainnet launch in December. The project has seen a surge in its Total Value Locked (TVL) due to the increasing number of people utilizing its technology. The network’s growth has led it to surpass Kraken, becoming the fifth-largest Ethereum staking provider. This achievement can be attributed to its new milestone of securing over 1.3 million staked ETH. The network is also supported by more than 900 operators running over 40,000 validator nodes.

SSV Network provides a seamless staking system for developers. The network utilizes DVT technology, a new development designed primarily for distributing validation across multiple machines. SSV allows node operators and validators to join the network and participate in distributed staking without needing any permission due to its flexibility.

Ether.fi is a developer of liquid restaking technology on Ethereum. This solution simplifies the process for people to stake their Ethereum without surrendering control of their coins. Through this initiative, Ether.fi contributes to making the Ethereum network more decentralized while making it easier for Ethereum holders to participate and earn rewards.

Distributed Validator Technology is now a crucial component of the billion-dollar staking industry. It plays a significant role in securing Ethereum’s validator layer. The Learn & Earn campaign, created by SSV Network and Ether.fi, aims to educate people about DVT and decentralized restaking, while also rewarding users for their participation.

[johnfondren]

Review of the liquid restaking

New technologies

New technologies are constantly appearing on the cryptocurrency market, which contribute to its further development. One of the recent important narratives has been the Ethereum restaking concept from the EigenLayer project

Built on top of EigenLayer

puffer finance token is a liquid restaking protocol built on top of EigenLayer. In it, users deposit stETH or wstETH, receiving pufETH in return. In order to return the initial investment together with the profit, it is necessary to return the issued asset.

At the same time, the functionality of the liquid token is not limited to this. It can be used in DeFi applications similarly to assets "frozen" in Puffer Finance.

However, the main mission of the protocol is to decentralize the operation of the Ethereum network by attracting more solo stakers, as well as ensuring the activities of AVS operators on EigenLayer. For this, users' funds are needed, who receive a financial benefit for providing them.

Features of Puffer Finance

The developers emphasize that their project is not just an LRT service, but offers users "native liquid restaking" (nLRT). This means that the platform aims to increase the number of new validators in Ethereum.

A minimum of 32 ETH must be blocked to start validating on the network. This severely limits those willing with less financial means. Puffer Finance allows you to reduce the entry threshold to less than 2 ETH.

[bitcoincables]

Bitcoin and DeFi: Unlocking Opportunities for the Crypto Industry

Bitcoin has been a pioneer in the cryptocurrency revolution, but it has yet to fully embrace the opportunities offered by decentralized finance (DeFi). While bitcoin is a great store of value and has even been recognized as legal currency by some nations, it is not widely used for lending, yield farming, and other DeFi services. This represents a $50 billion market opportunity that bitcoin holders are missing out on, as well as a chance for DeFi projects to tap into the vast liquidity of bitcoin and its $850 billion market cap. Bringing bitcoin into the Web3 ecosystem would benefit both parties.

The main obstacle to integrating bitcoin into DeFi has been a technological one, but the Taproot upgrade introduced last year has addressed some of these limitations. This upgrade has enabled newer features and options that were previously exclusive to chains like Ethereum, without the need for additional layers such as the Lightning Network. With the Taproot upgrade, truer DeFi services and NFTs have become possible on the bitcoin blockchain. Projects like Ordinals and Taproot Wizards have emerged, aiming to make bitcoin more fun and magical.

However, the issue of bringing bitcoin into DeFi goes beyond technology. There is also an educational and tooling problem within the bitcoin community. Many bitcoin holders are unaware of the opportunities available to them, such as using their bitcoin for lending, yield farming, staking, and accessing NFTs and other emerging services. By embracing these DeFi protocols, bitcoin holders could not only monetize their assets but also enjoy better prices and have more control over the security of their holdings, in line with the principles set out by Satoshi Nakamoto.

Overall, incorporating bitcoin into the broader decentralized app ecosystem would unlock new possibilities and strengthen the crypto industry as a whole. These opportunities would attract new audiences and institutional investors, especially now that the US has approved bitcoin ETFs. Demand for financial products on bitcoin is likely to increase, and integrating bitcoin into smart contract financial services would further enhance its appeal. Restaking, in particular, is a powerful concept that could offer passive bitcoin holders additional yield opportunities while holding their assets long term.

Read the full article on Blockworks.

#bitcoin #DeFi #Web3 #cryptocurrency

[ailtrahq]

Table of Content Renowned decentralized finance (DeFi) company Ankr sat down with Crypto Daily to give us a breakdown of its revolutionary Liquid Staking feature and to discuss retaking on the EigenLayer.  Crypto Daily is fortunate to have interviewed Tiago Pratas, DeFi lead at Ankr. Pratas has given us access to the nuances of Ankr's groundbreaking Liquid Staking protocol and to discuss EigenLayer's Ethereum restaking and safety features.  Give us a quick breakdown of Ankr as a DeFi infrastructure. “Ankr is a prominent DeFi infrastructure company dedicated to making the decentralized world more accessible and user-friendly. We achieve this by providing a comprehensive Web3 infrastructure platform that caters to developers, enterprises, and end-users. Ankr's suite of services includes node hosting, staking, and developer-focused offerings such as RPC nodes and app chains. Our services are designed to be cost-effective, scalable, and secure, making it easier for developers to build decentralized applications (DApps) and for end-users to access and interact with the DeFi ecosystem. You probably already used some of our services without even knowing, and we partner with major DeFi projects like Aave, 1inch, SushiSwap, and several major L1's.” Staking is excellent for investors to earn rewards on their assets, but Liquid Staking offers the user many more benefits. In summary, please explain what Liquid Staking is, why it is so revolutionary, and the benefits of liquid staking over traditional staking. “Liquid Staking is a groundbreaking concept in the blockchain and DeFi space. Traditional staking involves locking up your assets in a smart contract to secure a network and earn staking rewards. However, this process renders your assets illiquid, meaning you can't readily use or trade them.  Liquid Staking, on the other hand, provides a more flexible approach. When you stake your assets, you receive a token representing your staked assets, such as ankrETH. These tokens are tradable and can be used in various DeFi protocols, from providing liquidity to collateral for loans. The revolutionary aspect of Liquid Staking is that it combines the benefits of staking, such as earning the staking rewards while participating and boosting Ethereum network security, with the advantages being more capital efficient, more flexible for stakers, and easier to participate in the validation process of Ethereum and get access to the "risk-free rate" in the form of staking rewards.” How can users go about Liquid Staking through Ankr? “Liquid Staking through Ankr is a straightforward process. Users can visit Ankr's Liquid Staking Platform, select the assets they want to stake, connect their cryptocurrency wallet, and select the amount and stake! In return, users will receive Liquid Staking Tokens such as ankrETH,ankrBNB, etc., which represent their staked assets. These tokens can be used across DeFi platforms, providing liquidity and earning additional yields. The list of these DeFi opportunities can be found on our DeFi Dashboard.” Users are rewarded in ankrETH. What does ankrETH represent, and how is its value determined? “ankrETH represents the Ethereum deposited on the Validators with all the staking rewards that it has accrued. Therefore, ankrETH is a reward-bearing token, meaning that the fair value of 1 ankrETH token vs. ETH increases over time as staking rewards accumulate. Therefore, its market price is always tied to the amount of Ethereum you can redeem each ankrETH and the Ethereum price.” What benefits does holding ankrETH offer the user? “Firstly, High APRs, as AnkrETH boasts one of the best APRs in the market, thanks to the efficiency of our node operation and the distribution of MEV rewards. In addition to this, additional liquidity and capital efficiency of your assets as Unlike traditional staking, ankrETH maintains liquidity, allowing users to access their assets whenever needed while allowing you to participate in various DeFi protocols while still benefiting from staking rewards.

This is also meaningful as users still get exposure to Ethereum's Growth. As the price of Ethereum rises, so does the intrinsic value of ankrETH, offering users the potential for significant capital appreciation. Last but not least,  knowing that they are contributing to network Security of Ethereum since by staking with Ankr, users actively contribute to the security and decentralization of the Ethereum network, further enhancing its robustness and reliability.” We know that EigenLayer is a middleware protocol that allows for restaking. Explain to us what EigenLayer's Ethereum restaking platform is designed to do and what benefits it offers the user. “EigenLayer enables users to restake their ETH and extend cryptoeconomic security of Ethereum to additional applications on the network. EigenLayer's Ethereum restaking platform is designed to automate the process of restaking staking rewards for users, providing several significant benefits. It simplifies the compounding of staking rewards by automatically reinvesting them, resulting in exponential growth of staked assets over time. This automation makes the process hassle-free and accessible, even for those new to DeFi. Users benefit from maximized returns due to the compounding effect, potentially achieving higher returns compared to traditional staking or holding strategies. This can lead to multiple innovations built on top of EigenLayer. From Infracture products like oracles, bridges, or L2's to more yield-focused products like Liquid Staking tokens with higher yields.” How will Ankr utilize EigenLayer's restaking platform? “We love innovation and pay close attention to all the new things are happening in the market, especially when it comes to Liquid Staking! So far Ankr has proposed the EigenLayer DAO to list ankrEtH, but we also are playing close attention to the liquid staking protocols that are being built on top.” Ankr recently announced three new services to increase the security of its liquid staking service and provide more functionality and transparency for its users. Of particular interest is the ETH validator hub. Tell us more about this feature and how it will address slashing as one of the most significant risks associated with liquid staking. “ETH Validator hub will become an open marketplace that will act as a transparent way for users to choose which nodes they want to delegate their assets to. Our focus will be on Ethereum but will expand to other networks soon. This marketplace will offer enhanced versatility and empowerment to users concerning their assets, enabling them to select nodes that align with their individual risk evaluations and APY objectives. In essence, this service delivers a delegate staking encounter for Ethereum stakers. Ankr places a strong emphasis on security and transparency, and the ETH validator hub is a key part of our efforts to address slashing risks associated with liquid staking while allowing for the introduction of restaking. This hub employs a rigorous validator selection process, considering factors like reputation and security measures. Slashing protection mechanisms are in place to minimize the risk of loss due to slashing events. The ETH validator hub operates with responsive governance, allowing the community to participate in decision-making bolstering accountability and trust.” What are Ankr's plans for the future? Can we expect exciting and innovative strategies to improve the DeFi sector soon? “Ankr's vision for the future revolves around continuous innovation and user-centric strategies to advance the web3 sector. We are committed to developing innovative DeFi products and services, including expanding our liquid staking offerings while providing core infrastructure to the web3 ecosystem. Our goal is to empower users by providing cutting-edge solutions that enhance their crypto experience. We'll continue to explore new avenues, partnerships, and technologies to contribute positively to the ecosystem. Expect exciting developments as we work tirelessly to improve and innovate!”

Tiago Pratas is a seasoned cryptocurrency professional with expertise in blockchain and DeFi. As the DeFi Lead at Ankr, he's played a key role in increasing TVL from $65 million to over $180 million. With a strong crypto trading and research background, Tiago is an expert in blockchain technology, DeFi strategies, and the broader crypto ecosystem.

[ailtrahq]

Stader Labs has introduced a new Liquid Restaked Token (rsETH) on testnet that allows users to stake the same ETH on multiple networks simultaneously. The recently launched rsETH token builds on EigenLayer’s restaking protocol and is designed to boost staking rewards by leveraging liquid staking tokens like Lido’s stETH and Coinbase Wrapped Staked ETH (cbETH). Restaking enables users to earn staking rewards on ETH while retaining liquidity. During a recent interview with The Block, Stader Labs co-founder Dheeraj Borra explained the benefit of such a system. rsETH is more than just a token; it is an entry point to more rewards and opportunities in the crypto landscape, allowing users to aggregate rewards from various different sources to maximize their holdings Stader Labs co-founder Dheeraj Borra The rsETH token works by letting users deposit liquid staked ETH tokens and mint rsETH representing fractional ownership. These assets are distributed to node operators within Stader’s network to earn a share of staking rewards. Holders can trade rsETH on decentralized exchanges (DEXs), use it in decentralized finance (DeFi) protocols, and redeem the underlying assets anytime. The token is currently live on Ethereum testnet with launch on mainnet to be announced soon, according to statements shared with The Block. The platform already supports liquid staking on Ethereum, Polygon, BNB Chain, Near, Fantom and Hedera with $124 million total value locked. The rsETH launch aims to simplify access to restaking rewards but could raise concerns about re-staking the same ETH multiple times, an issue highlighted by Ethereum’s co-founder Vitalik Buterin in a late May blog post. In his post, Buterin argues that “re-staking” techniques used by protocols like EigenLayer to allow Ethereum validators to simultaneously stake on other networks brings systemic risks. The main concern is overloading Ethereum’s social consensus and essentially “recruiting” it to serve other protocols’ purposes beyond just validating Ethereum transactions. For example, some restaking designs rely on the threat of Ethereum forking away malicious validators who misbehave on the other network. This stretches Ethereum consensus into policing activities on entirely different blockchains. Buterin warns this has no limiting principle and risks pulling Ethereum into “uncomfortable choices” as its community gets pressured to make more judgement calls on behalf of other networks. He argues this could fracture Ethereum’s social cohesion over time as it takes on more “mandates.” It also creates perverse incentives for large projects to become “too big to fail” and demand preferential treatment in case of failures. Instead, Buterin advocates that restaking designs should avoid creating expectations that Ethereum consensus will intervene to solve problems. Validators should only be accountable according to the specific protocol’s rules, not rely on Ethereum slashing or forking. This keeps Ethereum focused purely on its own protocol rules and avoids over-burdening its community with responsibilities spanning multiple blockchains. While dual staking itself has risks, stretching social consensus is seen as a threat. Source

[ailtrahq]

Polygon’s native token, MATIC, is poised for a transformation. Sandeep Nailwal, the founder of Polygon Labs, has hinted at a significant technical upgrade that would evolve MATIC into POL, touted as a “third-generation token.” According to Nailwal’s X platform post, the imminent POL evolution represents more than a name change. POL encapsulates advancements that offer the allure of multi-chain staking minus the risks traditionally associated with restaking.  POL is a massive technical upgrade to MATIC POL delivers the benefits of multi-chain staking without the added risks of restaking. With the Polygon 2.0 proposal, the Polygon Ecosystem will expand from a single chain to an ecosystem of L2s that can easily interoperate and share… — Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) August 28, 2023   As Polygon 2.0 unfolds, the platform would burgeon from a single chain to an entire ecosystem of interoperable L2s, which can seamlessly share liquidity among themselves. The Functionality of POL In Polygon 2.0, the introduction of the newly devised POL will see it staked in a designated ‘staking hub.’ This mechanism, termed “enshrined restaking,” empowers POL to stake across diverse chains and take on varied roles. As a result, stakers could reap enhanced rewards without increasing their staked capital.  Highlighting the transformation of tokens over time, Nailwal compared the passive nature of BTC’s first-generation holders with the active staking capabilities ETH introduced in the second generation. With the third-generation POL, holders are presented with unprecedented versatility, securing multiple networks and embracing a spectrum of roles. A pressing concern raised by a user revolved around the transition mechanism. The user, who had staked MATIC, was keen on understanding how the shift would impact their staked tokens. Nailwal responded by hinting at a streamlined “1/2 click upgrade” from staked MATIC to staked POL, assuring more clarity on the governance approval. Current Market Dynamics As of now, Polygon’s valuation hovers at $0.569232 per token. Despite witnessing a slight 4.32% dip in the past 24 hours, its market cap stands robust at over $5.3 billion, ranking 14th on CoinMarketCap. Out of a maximum supply of 10 billion MATIC coins, around 9.3 billion are circulating, signaling strong investor trust and a potential growth trajectory. The evolution from MATIC to POL promises a fresh chapter of innovation and opportunities. As the community eagerly awaits more details, it’s evident that Polygon is charting a course toward uncharted territories. Source