ether.fi (ETHFI) is a decentralized liquid restaking protocol on the Ethereum blockchain, designed to enhance staking accessibility, efficiency, and decentralization for Ethereum users within the ecosystem. ETH holders can stake their assets while retaining control over their private keys, offering native re-staking where rewards are automatically compounded for higher returns over time.
ETHFI is the governance token of the ether.fi network, facilitating community management of key protocol aspects and influencing the growth strategy. Its decentralized governance model allows token holders to make key decisions to shape the protocol.
ether.fi employs a delegated staking model, utilizing an auction mechanism for node operators to bid for the right to run validator nodes. This approach allows for dynamic and decentralized validator management.
Stakers can stake their ETH and receive ether.fi’s liquid staking derivative token, eETH, which can be traded or used within various DeFi applications, to earn loyalty points, restaking rewards, and more, providing greater flexibility, utility, and liquidity not typically found in traditional staking methods. By staking their ETH, stakers can accrue staking rewards, and optimize their earnings with ether.fi’s automatic native restaking of their ETH on EigenLayer.
ether.fi’s vision extends to creating a node services marketplace, enhancing Ethereum’s distributed infrastructure with RPC endpoints, Custom On-Chain Data APIs, and dedicated nodes.
