Ether.fi

What is Ether.fi?

Ether.fi is the largest decentralized, non-custodial liquid restaking protocol built on Ethereum. The protocol allows users to stake ETH and receive eETH (or its wrapped version weETH), liquid restaking tokens that earn both Ethereum staking rewards and EigenLayer restaking rewards. Launched in 2023, Ether.fi has grown to become the dominant player in the liquid restaking space with over $5 billion in total value locked.

What distinguishes Ether.fi from other liquid staking protocols is its non-custodial architecture and native restaking integration. Stakers retain control of their validator keys through a unique key management system, and their staked ETH is automatically restaked on EigenLayer to earn additional yields. This "restaking by default" approach simplifies the user experience while maximizing yield potential.

The protocol has become essential infrastructure for the EigenLayer ecosystem, providing the largest source of restaked ETH for Actively Validated Services (AVSs). Ether.fi has also expanded into additional products including eETH rewards programs, the ETHFI governance token, and various DeFi integrations that enhance utility for token holders.

Key Statistics

• Total Value Locked: $5B+ in restaked ETH
• Main Tokens: eETH (rebasing) and weETH (wrapped)
• Market Position: Largest liquid restaking protocol
• Networks: Ethereum mainnet, with weETH bridged to L2s
• Node Operators: Distributed professional operators
• Security Audits: Multiple audits from Zellic, Nethermind, others
• Governance: ETHFI token

How Ether.fi Works

Native Liquid Restaking

The Ether.fi flow combines staking and restaking:

1. User deposits ETH into Ether.fi
2. Receives eETH representing their position
3. ETH is staked with node operators
4. Staked ETH is natively restaked on EigenLayer
5. Earns staking + restaking + points

Understanding eETH and weETH

• Balance increases daily as rewards accrue
• Direct representation of staked/restaked position
• Some DeFi protocols don't support rebasing
• Best for simple holding

• Non-rebasing, value-accruing version
• Exchange rate vs ETH increases over time
• Better DeFi compatibility
• Preferred for lending, LP, collateral

Non-Custodial Architecture

Ether.fi's key innovation:

• Stakers maintain control through distributed key management
• Validators use Distributed Validator Technology (DVT)
• No single point of failure
• Enhanced security vs custodial models

Step-by-Step: Using Ether.fi

1. Visit app.ether.fi/eeth
2. Connect your Ethereum wallet
3. Enter ETH amount to stake
4. Approve and confirm transaction
5. Receive eETH immediately

1. Wrap eETH to weETH on the platform
2. Or deposit directly to receive weETH
3. Use in DeFi protocols

1. Navigate to unstake section
2. Request withdrawal
3. Wait for processing (variable timing)
4. Claim ETH when ready
5. Or swap on DEXs for instant liquidity

Monitor your Ether.fi positions with Fensory to track yields and rewards across protocols.

Ether.fi Fees

Current APY Ranges

Key Features

1. Largest LRT Protocol

Market leader with $5B+ TVL provides deep liquidity and strong integrations.

2. Non-Custodial Design

Stakers maintain key control through distributed key management.

3. Native Restaking

Automatic EigenLayer restaking without manual intervention.

4. DVT Integration

Distributed Validator Technology enhances security and decentralization.

5. Extensive DeFi Integration

weETH accepted across Aave, Pendle, Curve, and dozens of protocols.

6. Loyalty Points Program

Active rewards program for stakers and LPs.

7. ETHFI Governance

Community governance over protocol parameters.

Ether.fi vs Competitors

Risk Considerations

Smart Contract Risk

As a complex protocol integrating with EigenLayer, Ether.fi has significant smart contract surface area. Multiple audits mitigate but don't eliminate risk.

EigenLayer Risk

Restaking on EigenLayer introduces novel risks including AVS slashing conditions and economic security assumptions.

Slashing Risk

Both Ethereum validator slashing and EigenLayer AVS slashing could impact stakers. Ether.fi's DVT helps mitigate validator slashing.

Depeg Risk

eETH/weETH could trade below ETH in extreme market conditions, though liquidity typically maintains the peg.

Concentration Risk

As the largest LRT, Ether.fi represents significant concentration in the restaking space.

Novel Technology Risk

Restaking is new. Unknown risks may emerge as the ecosystem matures.

Frequently Asked Questions

eETH rebases (balance grows), weETH is wrapped and value-accruing (price grows). Both represent the same underlying position.

Stakers maintain key control through distributed key management, reducing counterparty risk compared to custodial alternatives.

Restaked ETH secures additional services (AVSs) on EigenLayer, earning rewards beyond base staking.

weETH is widely integrated and accepted as collateral on major platforms. However, LRT-specific risks apply.

Points may convert to ETHFI tokens or other rewards. They incentivize staking and protocol participation.

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