sCIP#20 - ETH/ankrETH

Summary:

As the beacon chain is approaching its launch, Curve Finance would like to propose to create a pool with one of the first staked solutions: stkr.io

Stkr was developed by the Ankr team and can allow anyone to deposit and stake ETH without any technical knowledge and receive a yield bearing token from the launch of the Beacon Chain currently due on the 1st of December. This pool would act as a bridge, giving exposure to ETH2.0 staking to liquidity providers as well as a share of fees while allowing traders to easily swap between ankrETH and ETH in large quantities.

Why ankrETH?

  • Stake any amount of ETH (minimum 0.5 ETH) to earn staking rewards.
  • Keep your staked ETH liquid to trade, sell or participate in DeFi applications through ankrETH.
  • No technical knowledge required!

How does ankrETH work?

Your ETH then gets staked in an Eth2 node via a Stkr Micropool, automatically getting locked up for an uncertain period of time (until phase 1.5 goes live), and you will automatically receive ankrETH on the Stkr platform.

Before the start of staking rewards, ankrETH is issued at a ratio of 1:1 to the amount of ETH you staked. So, for instance, if you have 10 ETH staked, you will get 10 ankrETH.

As ankrETH is a bond-like asset, representing your staked ETH plus any future staking rewards, the issuance ratio of ankrETH:ETH will decrease over time. 1 ankrETH will gradually be worth more than 1 ETH, so the exchange rate of ETH to ankrETH continually increases and you receive a value-equivalent amount pegged to the time at which you deposit your ETH

Owning ankrETH gives you several options. You can hold it and accumulate rewards, or you can redeem your ankrETH for real ETH at any time. In other words, you can have your cake and eat it too.

Links:

https://stkr.io/
https://medium.com/ankr-network/stkr-explained-what-is-ankrETH-f0326abfa8e8
https://ankr.com/

Notes:

Poll:

https://signal.curve.fi/#/curve/proposal/QmPCYvAPujQ1z6YPjTaRFiGFQqfZuLfvFm3WisCLFuj4sY

6 Likes

If the peg is going to slowly drift further away from 1:1, what does this mean for losses? Will A need to be increased regularly?

3 Likes

would it make sense to add coinbase’s beacon ETH or Cream’s CRETH2 as well to the pool?

2 Likes

those cant be redeemed for ETH at 1:1 ratio therefore cant be added

That is only before launch

so we will be getting trading APY, staking APY and eventually CRV APY for this pool?
Sounds promising!

1 Like