eETH vs weETH: EtherFi Token Comparison 2026
EtherFi offers two versions of its liquid restaking token: eETH (rebasing) and weETH (wrapped, non-rebasing). Understanding when to use each is essential for optimizing your EtherFi strategy.
Token Mechanics
eETH (Native) is EtherFi's base liquid restaking token. It uses a rebasing mechanism where your balance automatically increases as staking and restaking rewards accrue. One eETH represents your proportional share of EtherFi's staked ETH. weETH (Wrapped) is the wrapped, non-rebasing version. Your token count stays constant while each weETH becomes worth more eETH (and thus ETH) over time. The weETH:eETH exchange rate continuously increases.Why Two Tokens?
The dual-token system exists because:
- DeFi Compatibility: Many protocols can't handle rebasing tokens
- Tax Simplicity: Non-rebasing simplifies tax reporting
- Smart Contract Safety: Some contracts break with rebasing
Use Case Comparison
Use eETH When:
- Holding in personal wallet
- You want intuitive balance growth
- Not using in DeFi protocols
- You understand rebasing
Use weETH When:
- Using as DeFi collateral
- Providing liquidity
- Using in any smart contract
- Tax reporting simplicity matters
DeFi Integration
eETH DeFi Limitations
- Limited protocol support
- May break some contracts
- Rewards not captured in some cases
- Requires wrapping for most DeFi
weETH DeFi Compatibility
- Accepted on Aave, Pendle, Morpho
- Works in all liquidity pools
- Standard ERC-20 behavior
- Recommended for DeFi
Conversion
- eETH → weETH: Wrap through EtherFi (gas cost)
- weETH → eETH: Unwrap through EtherFi (gas cost)
- Rate: Continuously changing (weETH appreciates)
Yield Equivalence
Both tokens earn identical yields:
- eETH: Balance increases
- weETH: Value increases
The underlying restaking rewards are the same. Only the expression differs.
Tax Implications
eETH Tax Considerations
- Each rebase is technically taxable
- Creates many small events
- Complex tracking required
- Daily income recognition
weETH Tax Considerations
- Single event at disposal
- Simpler capital gains treatment
- Easier to track cost basis
- Preferred for tax efficiency
Recommendation
For most users: Use weETHThe non-rebasing model is more practical:
- Works everywhere in DeFi
- Simpler tax treatment
- Standard token behavior
- Default recommendation
Use eETH only if you specifically want rebasing mechanics in your wallet.
Manage your EtherFi position with Fensory.