ether.fi is launching eETH, a Liquid Staking Token (LST) that will allow users to stake their ETH to accrue staking rewards and automatically restake their ETH. ether.fi will be working with DeFi partners to create utility for eETH including Balancer, Gravita, Pendle and others.
George Town - October 18, 2023 - Staking is a part of the Ethereum proof-of-stake (PoS) consensus mechanism that allows users to lock their ETH in exchange for the right to run an Ethereum validator and earn a share of network revenue. Liquid staking creates a tokenized representation of the staked ETH, an LST, so that users can easily trade it and use it in DeFi applications.
The next chapter in the development of proof-of-stake chains is restaking, which allows users to leverage their staked ETH to extend the Ethereum trust layer to secure other services - such as other blockchains, data availability services, or oracle networks. The benefit to stakers is earning additional revenue on their staked ETH.
ether.fi is the newest liquid staking protocol on Ethereum. What makes ether.fi unique is:
In other existing liquid staking protocols the staker gives up control of the ability to unstake their ETH because the delegated node operator holds control of the staking keys. This is a source of risk and centralization for the Ethereum network. On ether.fi the staker holds control of their keys and is able to unstake and withdraw their ETH at any time.
Restaking is likely going to become table stakes for liquid staking protocols. ether.fi is committed to restaking because it has the power to extend the Ethereum trust layer and help the network with decentralization and value accrual.
Currently when users restake their ETH they lock their tokens, which breaks composability in DeFi. Staking with eETH on ether.fi automatically restakes and accrues staking rewards while allowing users to use eETH in other DeFi protocols. No other liquid staking protocol has this capability.
ether.fi raised a $5.3M seed round in March 2023 in order to launch eETH. In advance of the eETH launch ether.fi has amassed over $30M in TVL and is expecting an influx of ETH upon launch driven by the demand for non-custodial staking and the upside and unique value of restaking.