ether.fi Staked ETH/EETH#142 12

What is Ether. fi Stacked Ether (EETH)?

Ether. fi is a decentralized protocol for non-custodial delegated staking on the Ethereum blockchain where ETH can be staked and yet users possess the control over private keys. Unlike custodial platforms, this is essential in maintaining user control and fund belongings, under the wider economy of DeFi.

At the heart of Ether. fi is a liquidity staking that comes with an EETH token since it empowers users to stake ETH but maintain liquidity. In this sense, Ether.fi becomes unique in that holders can mint eETH while earning different forms of rewards such as in-saving of Ethereum staking rewards, ether.fi Loyalty Points, re-staking rewards (comprising points of EigenLayer), and finally providing liquidity to DeFi protocols.

Ether. fi platform is founded on decentralization, community involvement, and sustainability. It provides a sustainable long-term availability and fair operation by refusing to accept models that drive for unsustainable. With more than $3 billion in total value locked, it is the most extensive liquid re-staking protocol and the simplest staking experience ever discovered.

Important features of Ether.fi include:

Decentralized Staking: ETH staking whilst retaining individual private keys is thus entitled to security and alignment with the ethos of Ethereum.

Liquid Staking with eETH: Minting eETH allows liquid and maximum staking while holding flexibilities.

Diverse Revenue Streams: Users can earn Ethereum staking rewards, loyalty points, re-staking rewards, and possibilities of joining DeFi protocols. 

Distributed Validator Technology (DVT): It decreases the capital requirement for an individual node operator to help contribute to the decentralization of Ethereum.

How does ETher.fi(EETh) Work?

Ether.fi is a decentralized staking protocol on Ethereum that allows users to stake ETH and still keep ownership of their private keys.

• Staking ETH and Minting eETH: Users deposit ETH into the Ether.fi platform, and in return, they receive eETH that represents the staked Ethereum. This effectively allows them to maintain liquidity while staking. The protocol also restakes ETH into EigenLayer, enhancing the rewards​.

• Types of Rewards: Users will earn four different types of reward

• Ethereum Staking Rewards: The normal rewards from Ethereum's proof-of-staking system.

• Ether.fi Loyalty Points: It is accumulated depending on the amount and time staked in ETH​

• EigenLayer Restaking Rewards: Further rewards for re-staking ETH in EigenLayer​

• DeFi Liquidity: eETH can be used by DeFi protocols to allow staking rewards to also become liquidity​ BANKLESS​.

• Liquid Restaking: Ether.fi is for liquid restacking; staking and re-staking can be done without locking tokens, making it possible to use eETH in DeFi while earning rewards from Ethereum and EigenLayer​ BANKLESS​. 

• Thus, Ether.fi combines staking, re-staking, and DeFi liquidity and gives a chance for earners to enjoy all the rewards but still retain flexibility in their assets.

Governance of Ether.fi: Empowering ETHFI Holders to Shape the Ether.fi Ecosystem

Ether.fi offers decentralized governance to ensure that the future of the protocol is determined by active ETHFI token holders. Users thereby empower themselves to make important decisions, such as treasury management, token utility, and the general growth of the ecosystem, by holding ETHFI tokens. Through a participatory process, these token holders are empowered to vote on proposals, influence strategic decisions, and part-take in the developments of Ether.fi.

Roles of Governance for the ETHFI Holders on Ether.fi

Treasury Decisions: ETHFI holders influence how funds allocated to a particular project in the treasury are spent. This will have an impact on what projects or developments get sponsored in the ecosystem. 

Utility of the Token Utility: The community would help in guiding the design and utility of the ETHFI token to ensure that it is tailor-fitted with the needs and priorities of the Ether.fi network. 

Ongoing Growth: Governance members would participate in the facilitation of the growth of Ether.fi, thereby offering direction towards long-term sustainability. 

Etherfi (EETh) Tokenomics. 

Distribution and Allocations of the Tokens: Ensuring the health and growth of the ecosystem, the entire supply of ETHFI tokens is strategically distributed:

23.26% allotted to Core Contributors driving the development of the protocol (3 years vesting). 

23.34% allocated to the DAO Treasury, which funds development and initiatives in the Ethereum ecosystem. 

15.3% earmarked for User Airdrops rewarding the community in return to some precise beneficial actions. 

5.6% Partnerships for ensuring strategic alliances towards growth. 

32.5% allocated to Investors, vesting over 2 years. 

Being part of the DAO, ETHFI holders directly contribute to the evolution of Ether.fi making it decentralized, secure, and sustainable

As of 2024, The token reached its All-Time Low (ATL) on August 5, 2024, trading at $1.10, with a growth from then of 299,781.68%. It hit the All-Time High (ATH) on December 23, 2024, when it traded at an insane $3,316.63, currently down by only 0.81% from its ATH.

Market Cap: $823.8M

Circulating Supply: 250.4K EETH

Total Supply: 2.2M EETH

Who is the Founder of Ether.fi?

Ether.fi was founded by Mike Silagadze, a serial entrepreneur who is perhaps now best known for his contribution as co-founder at Top Hat, an ed-tech company. After selling Top Hat, Silagadze entered into the blockchain and crypto space, launching Ether.fi in late 2022. His mission is to create decentralized Ethereum staking solutions - mainly liquid staking and staking-as-a-service. Ether.fi has easily gained traction, worth $3 billion, in deposits. Based in the Cayman Islands, the company benefits from favorable regulations for global expansion.