AnkrETH unites with EigenLayer’s ecosystem as Collateral Asset

A recent announcement by AnkrETH on November 22 mentioned the integration of the decentralized network as an LST (liquid staking token) collateral on the innovative protocol EigenLayer, which is based on the Ethereum blockchain.

The integration will introduce fresh use cases for the new liquid staking token, Ankr. Additionally, the integration will position the Ankr token as an active element in EigenLayer’s decentralized marketplace.

EigenLayer is an Ethereum-based middleware protocol that brings new crypto-economic restaking primitives and commoditizes reliability, creating a general marketplace to reuse liquid staking tokens or staked ETH on a consensus layer.

The AnkrETH integration as collateral on EigenLayer will create an additional use case for the liquid staking token and provide security to the Ethereum blockchain network. Additionally, LST users can offer security to further the use cases while leveraging the yield’s two layers.

By allowing restaking, EigenLayer enables ETH or LST rehypothecation that extends their utility beyond the standard crypto staking purpose.

The advantages of the AnkrETH integration include:

Extended Utility – Token holders can leverage their virtual assets within the EigenLayer space and contribute to the security of Ethereum while participating in different DeFi (Decentralized Finance) applications supported by EigenLayer.

Enhanced Composability – The integration provides all AnkrETH token holders with added composability options that broaden the freedom for financial planning and investment strategies.

Increased Adoption – AnkrETH has become a collateral token on EigenLayer, which will benefit from another important use case, allowing increased adoption of the platform

Advanced Use Cases – The blend of EigenLayer’s restaking abilities and AnkrETH’s staking rewards will create new avenues and allow AnkrETH crypto staking by implementing the LRT (Liquidity Restaking Tokens) solution. This will also enable users to earn rewards on two layers and simultaneously remain liquid.

Integrating ankrETH as a collateral asset to EigenLayer’s framework expands Ankr’s use cases and adds another relevant one. This collaboration improves ankrETH and enhances DeFi with more powerful and flexible financial options. EigenLayer’s dependence on market LSTs makes it crucial to diversify integrated solutions to reduce asset vulnerability.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

Related Articles

Back to top button