New Polygon Liquid Staking: Earn More With Your MATIC!

Published on: 25.10.2021

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

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

💥Liquid staking

💥Elastic supply

💥Enhanced decentralization

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).