New Polygon Liquid Staking: Earn More With Your MATIC!

This post was originally published on ankr

Franciska Kovacs

Oct 19 · 5 min read

Polygon Liquid Staking from Ankr StakeFi offers instant liquidity for the MATIC tokens you stake on our platform, enabling you to connect your staked assets to DeFi and create an opportunity to earn several extra layers of rewards.

The Polygon Platform

Polygon is yet another project that has seen massive growth lately as a chain for developers to build on as it helps eliminate the high gas fees and slow speeds associated with Ethereum. Polygon is part of a movement of similar projects like Polkadot, Avalanche, and Solana that aim to bring better performance to a very demanding area. However, Polygon has the distinct advantages of benefiting fully from Ethereum’s network and having a more open, secure, and powerful network.

Earning more rewards while supporting the Polygon network via staking has never been easier, thanks to Polygon Liquid Staking from Ankr StakeFi.

What Is Polygon Liquid Staking?

Ankr StakeFi is all about simplifying the staking process while opening the doors for our users to earn more layers of income. Our newest product, Polygon Liquid Staking, is designed to give you access to more ways to increase your potential rewards and boost your overall ROI.

Polygon Liquid Staking is an enhanced method of staking on the Polygon blockchain. Staking on Proof-of-Stake networks normally means you would need to lock your tokens up with a validator node. This isn’t ideal as your assets are now “illiquid” or unavailable to spend or earn in other places. Illiquidity is sometimes the price paid for making an APR with some financial strategies, but thanks to Polygon Liquid Staking, it is totally avoidable.


How Does It Work?

With Polygon Liquid Staking, Ankr will stake your MATIC tokens with validator nodes we’ve selected while giving you back new aMATICb tokens. This is an ERC-20 reward-earning token that will distribute staking rewards to your wallet daily. In other words, your wallet’s aMATICb balance will increase daily to reflect your staking rewards.

The best part is, you can use your aMATICb tokens to generate many more layers of passive income when using it to perform liquidity mining, lending, and other strategies on DeFi platforms like OnX, Uniswap, or Compound.

Benefits of Polygon Liquid Staking Over Normal Staking

Using Ankr StakeFi is the best way to stake MATIC as you can access instant liquidity in the form of the aMATICb token. Avoiding locking your tokens up with the Polygon network is a big advantage — it allows you to use the value of your staked tokens to earn multiple layers of rewards on DeFi platforms and multiply your ROI potential. Yield farming, arbitrage trading, lending, and more will all be possible using the value of your staked assets.

If you would like to unstake your MATIC, you can choose the “unstake” option at any time on the StakeFi platform. After you select unstake, you will need to wait for a 28-day lock-up period before you can claim your funds. During this time, your MATIC will still be earning staking rewards. This creates a more robust price stability mechanism for Polygon Liquid Staking, where any price deviation of aMATICb vs. its fair value will create trading opportunities that can be exploited by redeeming aMATICb (unstaking MATIC) or minting aMATICb (staking MATIC).

That means if you buy aMATICb at a discount on a DEX and unstake it on Ankr StakeFi at its fair value, you will make a profit! Therefore, aMATICb price stability will be less dependent on the size of liquidity pools and associated rewards, incentivizing more liquidity providers.

Our Polygon Liquid Staking will not be using Ankr validator nodes to stake the MATIC from users. Ankr StakeFi will instead select objectively suitable and reliable Polygon validators, making Polygon Liquid Staking as decentralized as possible. This means that Ankr will not contribute to giving any party more influence over the Polygon network as the MATIC will be spread over a wide variety of nodes.

Receive an easier staking experience with no technical knowledge necessary. Internet bonds make staking as easy as a swap: your MATIC for the reward earning aMATICb token.

Staking with Polygon Liquid Staking allows you to play an important role in boosting the network’s security as a whole. Ankr’s Polygon staking system distributes staked tokens intelligently across the Polygon ecosystem to help the network achieve optimal decentralization. Diversity and decentralization of active validators both ensure the network remains as secure as possible.

Boosted yields with Polygon Liquid Staking

As Liquid Staking solves the capital inefficiency problem of (Nominated) Proof-of-stake networks, it offers a way to earn additional rewards on your staked MATIC, enabling new yield farming strategies. The main components of Polygon Liquid Staking will be:

  • Liquidity mining opportunities are enabled by providing liquidity for pools in decentralized exchanges. The first main liquidity pools are expected to be aMATICb/ETH.
  • Farming rewards for liquidity providers. Liquid Staking presents several yield farming strategies for users to contribute to liquidity pools and gain a share of the trading fees and governance tokens. These new LP tokens can be used to generate yet another layer of earnings.
  • Staking rewards on farmed tokens. After using yield farming strategies, users can also reinvest their farmed LP tokens into more staking opportunities. This is a highly repeatable process as layers of rewards from farming and staking will quickly stack up.
  • Yield aggregators and vaults can automate yield farming rewards and enable compounding returns with next to no effort from users. This is a great method for maximizing your passive income strategy.

More trading opportunities are enabled thanks to the elastic supply nature of aMATICb, meaning that you could potentially buy aDOTb at a discount on a Decentralized Exchange and redeem it (unstake it) on Ankr StakeFi to extract its fair value back in 28 days (the Polkadot unstaking lock-up period).

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