HomeCoinsAnkr (ANKR)aETH vs fETH: which liquid asset to choose? | by Franciska Kovacs...

aETH vs fETH: which liquid asset to choose? | by Franciska Kovacs | Ankr | Mar, 2021

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What is aETH?

aETH is a synthetic reward-bearing bond asset that enables instant liquidity for the Ethereum 2.0 network.

aETH represents the staked ETH plus all future staking rewards. Initially, at the start of Eth2 staking on December 1st 2020, aETH was issued at a ratio of 1:1 to the amount of staked ETH.

The amount of aETH you hold will not increase. Instead, the price of aETH is expected to grown in ETH value, as your aETH contains your principal stake plus earned staking rewards.

At the end of the staking period (probably in 2022) you can redeem your aETH for your original staked ETH plus your staking rewards (which are expected to be around 15% in the first year).

aETH allows you to stake Eth2 and redeem rewards before phase 1.5 goes live and the lockup period ends (which can take up to several years!).

aETH is listed on Uniswap, Sushiswap, and Curve for immediate liquidity and trading. aETH holders can trade or provide liquidity to the aETH/ETH pair on the above mentioned platforms and earn from transaction fees.

What is fETH?

fETH is a synthetic derivative asset designed by Ankr Staking to provide instant Eth2 liquidity. Essentially, it serves as Eth2 futures.

Different than aETH, fETH is pegged with ETH at a 1:1 ratio. When you stake your ETH and choose to redeem fETH, you are allocated a percentage of the total supply according to the size of your stake.

Every day, Ankr Staking receives ETH rewards into the fETH Eth2 staking pool, which are then airdropped to our stakers as fETH. As a result, the amount of fETH you hold in your wallet will automatically increase with every rebase. The rebase airdrops represent your staking rewards.

aETH and fETH on Binance Smart Chain

aETH and fETH are now available on the Binance Smart Chain network. You can stake Binance-pegged ETH and redeem aETH, which you can use to trade or provide liquidity and earn rewards on Bakeryswap (more exchanges to follow soon).

The BSC network provides a smooth user experience with low fees and high transaction speed.

How to choose between aETH or fETH?

That’s the question. It’s up to you which one to choose, as both options are equally good at providing instant liquid Eth2 staking.

There are some nuances to consider, however. aETH accumulates value over time and seems like an optimal solution for long-term holders. fETH, on the other hand, lets you keep track of your yield on a daily basis, and could be most valuable for more active stakers to have their finger on the pulse.

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