Add ankrETH as collateral to mint R

Proposals
1

Introduction

Ankr proposes to the Raft community the listing of ankrETH as collateral for its CDP.

ankrETH is a form of ETH Liquid Staking from Ankr Staking that offers instant liquidity for your staked ETH, enabling you to connect your ankrETH tokens with DeFi platforms and earn several more layers of rewards with auto-bribes.
Ankr is a leader in RPC nodes with projects like Aave, 1inch and SushiSwap as clients and has TVL across the Liquid Staking Offering with over $50m in TVL for ankrETH alone.

Ethereum Liquid Staking as provided by Ankr Staking offers instant liquidity for your staked ETH, enabling you to connect your ankrETH tokens with DeFi platforms and earn several more layers of rewards.
ankrETH is a reward-bearing token, meaning that the fair value of 1 ankrETH token vs. ETH increases over time as staking rewards accumulate.

This proposal aims to propose the R community to onboard ankrETH as collateral and provide in-depth information for the community to discuss the risk factors of ankrETH for collateral onboarding.

Links

• Website: https://www.ankr.com/
• Documentation: Ankr Staking – Ankr
• Github Page : Ankr · GitHub
• Twitter: https://twitter.com/ankr https://twitter.com/ankrstaking
• Reddit: Reddit - Dive into anything
• Telegram: Contact @ankrnetwork

ankrETH Fundamentals

Important Info

  • ankrETH is the oldest liquid Staking in the market and was created on the 20th of November of 2020
  • During this period, ankrETH never had any issues (from slashing, hacks, exploits, etc)
  • We are usually the Liquid Staking with the highest APR as we have a very well-optimized node operation and distribute 100% of the MEV rewards we get to our Stakers
  • ankrETH has an omnichain presence that allows users to have exposure to ankrETH in multiple chains like BNB, Fantom, Polygon, Arbitrum, Optimism, etc.
  • ankrETH is fully redeemable for ETH which lowers the list of this LST compared to others in the space

ankrETH Fees

Ankr charges 10% of the ETH staking rewards earned in the ankrETH staking pool that is split between Ankr and Node Operations

Audits

ankrETH has been audited several times by Beosin and Salus! The audits can be found here Audit reports – Ankr

Market Analysis

TVL

  • Ankr had a Peak of $250m TVL across all the liquid staking offerings!
  • Currently, we have over $51m in ETH alone which represents more than 31,250 ETH staked from over 5,377 Unique depositors!
  • For more interesting data, we recommend you check our Dune Dashboards, dedicated to ankrETH

Liquidity

ankrETH is present in multiple different DEX’s and CEX’s across the ecosystem with millions in TVL and Yield Opportunities for Our Users

ankrETH Liquidity Pools

  1. Balancer wstETH/ankrETH on Ethereum - $5m
  2. Curve ETH/ankrETH LP on Ethereum - $2.4m
  3. Balancer wstETH/ankrETH on Arbitrum - $3m
  4. Thena ankrETH/ETH on BNB - $600k

For a complete list of LPs, Use Cases, and DeFi opportunities, visit our DeFi Dashboard

Risks

Market Risk

  1. Depegs: The value of ankrETH although pegged to an ETH value that can be redeemable, is still subject to market forces that might cause temporary depegs from its actual value. From our experience, arbitrageurs are fast to capture this inefficiency but nonetheless, this can cause liquidations to users.
  2. AnkrETH Liquidations: Ankr is comprised of boosting on-chain liquidity in order to further facilitate liquidations of ankrETH in the case they occur. In addition to this, we recommend a conservative approach so the ankrETH on R can always be liquidated and not pose a threat to the R stability.
  3. ankrETH is redeemable: Since ankrETH is redeemable for ETH, this facilitates market inefficiencies and makes ankrETH less risky compared to other LSTs in the space

Technology Risk

  1. Smart Contract Vulnerabilities: Although ankrETH has been on the market for over two years without any issues and has been audited multiple times by different audit firms, however there is always the risk of black swan events with vulnerabilities that were not found by the audits or exploited yet.
  2. Oracles: Any issues with the price oracle of ankrETH might result in wrongful liquidations of users.

Parameters

Based on this, we propose the R community a conservative approach with the following parameters:

Parameter stETH rETH ankrETH
Minimum Collateralization Requirement 120% 120% 140%
Interest Rate 3.5% 3.5% 3.5%
Collateral cap uncapped 20,000 rETH 3,500 ankrETH

Ankr is willing to discuss the proposed parameters and modify them according to feedback from the Raft team and the R community.

3 Likes
2

That’s a sound proposal from an OG liquid staking provider.

I do support this proposal.

1 Like
3

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source: Raft Collaterals - Dune

@Ankr
DISCLAIMER:
I checked out ankrETH-C contract on Dune only.

Questions that need answers:

  1. I considered ankrETH-C only, should ankrETH-A and ankrETH-B also be considered ?
  2. Which variant of ankrETH will be considered as collateral ?
  3. Are the variants of ankrETH interlinked ?? (i.e will contagion on one contract affect the others)
  4. What are the available oracles ??

Pros :

  • Industry OG
  • Has experience in LSTs across other chains as well

I am not in support of this proposal yet. Would love to see the response from Ankr team on the different variants on LST token and oracle availability. Even with clarity on those, given the amount of ankrETH in DEXes, i think 1000 to 2000 would be a good start for collateral cap.
However I am also aware that, v2 Raft uses mint cap rather than collateral cap (@david correct me if im wrong). So I think LST team should suggest their mint cap and the reasoning behind it.

1 Like
4

Thank you for the support!

5

Thank you for the feedback @maybeyonas !

First of all, we no long support ankrETH-B. Both tokens have become ankrETH, which is a reward-bearing token, meaning that the fair value of 1 ankrETH token vs. ETH increases over time as staking rewards accumulate. This is the only asset that is going to get listed. Hope this answers your questions 1,2 and 3.

Secondly, we are working with multiple Oracle providers like Pyth, Dia Data and Binance to create the price oracle for ankrETH. In addition to this, we will create a similar oracle to what was used on Aave for rETH, where you use the ankrETH/ETH ratio and multiply it by the eth/usd chainlink oracle.

Thirdly, we accept your suggestion on lowering the collateral cap to 2000 although keep in mind that we are launching a feature called flash unstaking, which will allow users to instantaneously redeem their ankrETH for ETH, lowering slippage, illiquidity risk, and the necessity of having liquidity on DEX’s as the only metric to consider.

Last but not least, the dune you are mentioning above does not show accurate data. I suggest you have a look at this one to complement your boards → https://dune.com/ankr/ankr-liquid-staking-eth

Hope all your doubts were clarified and you are ready to fully support our proposal! Let me know if you have any additional questions

1 Like
6

thanks for the reply @Ankr

I checked out and the LST token under consideration is 0xe95a203b1a91a908f9b9ce46459d101078c2c3cb. This token is tagged as ankrETHC in Dune, which is what was used in my dashboard.

Regarding collateral cap and the new flash unstaking feature, I would stick to starting out with a conservative collateral cap, wait for some battle testing in real world for the flash unstaking and then dial up the collateral cap.

Overall, I am in support of the proposal, with a dialed down collateral cap.

1 Like