Crypto infrastructure provider Ankr has released a series of software development kits (SDK) that developers can use to offer token staking and yield farming to users of their projects and platforms.
The SDKs will initially be offered on the Ethereum, Polygon, BNB Chain, Avalanche and Fantom networks. Once integrated, developers can allow users to stake tokens and earn rewards in return for a liquid staking token.
Liquid staking allows users to actually earn a return on their locked tokens by issuing new tokens of equivalent value to the locked ones. This frees up capital and makes such products attractive to users. Products like ether staking service Lido have $6.2 billion in locked value. The annualized returns offered by popular protocols like Compound and Aave range from 3% to 10%.
More than $86 billion in cryptocurrency is locked in decentralized finance (DeFi) projects across multiple blockchains. To encourage users to participate, the protocols generate their own tokens, which are generally traded on the open market and have a total capitalization of tens of billions of dollars.
The staking toolkit connects to Ankr’s staking platform, which delegates tokens to validators and mints new liquid staking tokens for stakers to claim for their personal wallets. They can then be used on other DeFi platforms to increase revenue.
Ankr will charge developers for a reduction in staking fees for providing the SDKs, and the staking revenue generated from Ankr staking will be partially shared with all Ankr token stakers as soon as it becomes possible, Ankr to stake in August.
Yield farming and value locked for DeFi projects peaked in November 2021 when about $230 billion was locked across various protocols. That’s down more than 62% amid a decline in the broader crypto market, data from DeFi Llama shows.
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