Ether.fi (ETHFI) is a 4th-gen DeFi ecosystem designed to help traders maximize their staking rewards. The platform integrates liquid staking and restaking options designed to provide low-risk passive income solutions to the market. Here is everything you need to know.
Ether.fi has been a project to watch since day one when it secured $32.3M in series A and seed funding. Notably, the staking protocol”s biggest investors included North Island Ventures, Chapter One Ventures, CoinFund, Node Capital, and Bullish.
What Problems Does Ether.fi (ETHFI) Attempt to Fix?
There are several problems that Either.fi was designed to alleviate. For one, liquid staking protocols eliminate loss of access to funding during staking. To accomplish this task, users receive a liquid staking token representing their staked asset that they can trade and use to access other options during the process. This approach empowers stakers to improve their returns and capital efficiency.
Source – Ether.fi
Centralization
Ether.fi is not the first restaking protocol to provide services to the Ethereum community. However, it is the first to put a major emphasis on decentralization. The network provides non-custodial services that keep stakers in control of their tokens. Decentralization protects users and the project by eliminating single points of failure.
Security
Ether.fi helps tackle security concerns by taking a few key steps. The network is open-source. As such, anyone can check the smart contract coding, ensuring that the platform operates accordingly. Additionally, the staking protocol has been audited by security heavyweights Certik and Zellic.
Traders enjoy a non-custodial staking experience with Ether.fi which means that your tokens remain in your control during the staking process. This strategy prevents unnecessary losses and helps to make the platform less appealing to hackers who seek out large centralized wallets. Stakers control their keys on Ether.fi, making it a smart solution for security-minded individuals.
Benefits of Ether.fi
There are several benefits that Ether.fi users gain. For one, they enjoy a higher level of capital efficiency. The entire ecosystem is designed to enable a user to stake, then take liquid staking tokens and restake them to drive ROIs higher. The developers streamlined these processes and made it easy enough that new users could easily access the added liquidity.
Loyalty Points
Another unique feature that makes Ether.fi a popular option for traders is its loyalty program. This proprietary reward system generates benefits for users based on their eETH/weETH balance. This gamified rewards system awards you badges for your efforts and tasks completed. Gain more badges and access more rewards.
The concept of loyalty rewards in the blockchain space has begun to become more common. These systems have a lot of upside potential. They help to drive engagement, raise awareness for blockchain benefits, and could potentially be set up to accrue across multiple networks in the future.
Added ROIs
The main draw for Ether.fi is the added ROIs through increased capital efficiency. Ether.fi enables you to leverage the same liquidity across multiple reward-generating processes including yield farming and restaking to improve your results.
How Does Ether.fi Work?
Ether.fi operates as a decentralized stacking protocol. The network enables users to support network nodes via pools to secure rewards. Notably, Ether.fi can interact with other advanced DeFi protocols as part of its yield-finding services.
Ether.fi users can leverage three variations: the desktop app, validator node client, and auction contracts. Additionally, the network’s flexibility and easy onboarding ensure that new users can access restaking and other advanced features. Uniquely, Ehter.fi leverages automated vaults to drive ROIs.
The three main offerings of Ether.fi include liquidity staking, restaking, and DeFi yield farming pools. Anyone can lock up their Ethereum in a staking contract and receive liquidity staking tokens that represent the staked assets’ value in return. These tokens can then be restaked or farmed to further drive ROIs.
Vaults
Ether.fi Vaults automatically scan and locate high yields across the DeFi market. These protocols can transfer users’ tokens to the most profitable option automatically. This structure helps to lower the workload and technical boundaries associated with retaking systems and drive capital efficiency to new heights.
EigenLayer
The retaking feature is powered by EigenLayer. EigenLayer is a pioneer in the restaking arena and has a proven track record of providing reliable services without compromising security. As such, integrating EigenLayer improves user confidence and functionality.
Token – (ETHFI)
The ETHFI token provides utility to the community in multiple ways. It enables users to interact with protocol features and services transparently. Additionally, network fees and rewards get paid in this token. Notably, there’s a limited supply of 1B ETHI scheduled for the life of the project.
eETH
Another token that Ether.Fi users will encounter eETH. These tokens are issued to liquidity providers to represent their staked assets. Liquid staking tokens are more popular than ever due to their ability to open up the door for more ROI opportunities. eETH is an ERC-20-compliant token that can be restaked or farmed.
Ether.fi (ETHFI) Governance
Another draw for the Ether.fi project is its community governance systems. This protocol gives every user a chance to voice their suggestions and approve or deny new upgrades. The voting system functions through a weighted staking process. The more tokens a user stakes, the higher their returns. This approach ensures the project expands in line with its community.
How to Buy Ether.fi
Currently, Ether.fi is available for purchase on the following exchanges.
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry, with over 9,000,000 users and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries, including Australia, Canada, and Europe, and is our most recommended exchange for USA residents. (Excluding New York & Washington state)
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. Restrictions may apply, depending on location.
Gate.io – This exchange was established in 2013 and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK. USA & Canadian residents are prohibited.
Ether.fi (ETHFI) – Empowering Traders by Improving Passive Income Efficiency
Ether.fi has a unique approach to the market that has helped it carve out a niche in a competitive DeFi sector. The protocol is among the first to fully integrate restaking and automated vaults, making it a pioneering force in the market. For these reasons, Ether.fi is worth watching.
You can learn more about exciting blockchain projects here.