Staking Pools represent several token holders consolidating their resources to enjoy several benefits over solo staking.
Simplified staking experience without needing KYC from a centralized exchange providing staking services
Lower staking requirement than staking nodes (e.g. min. 0.5 ETH instead of 32 ETH for one staking node)
Increase chances of validating blocks and receive rewards in return
How does it work?
To receive staking rewards from Proof-of-Stake protocols, it is required to validate transactions of the network and stake tokens to ensure that the validator is economically incentivized to validate transactions appropriately to avoid penalties, often referred to as slashing.
Validating transactions require technically advanced users to run validator nodes. To enable capital providers to stake without technical requirements, and validators to run nodes without contributing with a significant amount of own staked tokens, staking pools enable both validators and providers to benefit consolidate their resources towards the same goal: receive staking rewards.
Ankr helps capital providers to receive staking rewards and powers staking pools through its own staking nodes powered by a distributed network of data centers, or a Staking Manager connecting stakers and node providers, and automatically allocating your funds to the node providers hosting staking pools.