Ether.fi: Best yield opportunity for on-site ETH Holders

Although ETH has performed poorly recently, as a loyal Holder who still holds ETH, it is a topic worthy of careful study to increase the ETH currency standard steadily.

Let’s first conclusion, considering security and liquidity, the best chance of increasing the ETH ultra-low risk currency standard should be Ether.fi. Currently, Ether.fi has an actual rate of return of 5.8%, which is significantly higher than other similar protocols.

According to Pendle's calculation, tETH belongs to the new agreement and has not been tested by the market, and Bear Chain requires a certain amount of locking time. Therefore, Ether.fi's Symbiotic pool is the protocol with the highest yield in addition to the above two protocols.

Let's dive in:

About Ether.fi

Ether.fi is a decentralized staking protocol based on the Ethereum blockchain. Ether.fi provides native restaking, where pledge rewards are automatically recombined to produce higher returns. This feature helps maximize user benefits without manual intervention. Ether.fi aims to make staking in the Ethereum ecosystem more accessible, more efficient and more decentralized.

Key functions and features

One of the main functions of Ether.fi is the liquid staking function. Instead of locking ETH for a long time, users obtain liquid tokens by staking ETH, such as eETH (ETH staking on ether.fi). These tokens represent pledged ETH, which users can trade or use in various DeFi applications, providing greater flexibility and liquidity.

How it works

Seamless pledge, obtaining profits: users can pledge their ETH through the Ether.fi protocol. When a user pledges its ETH in the Ether.fi protocol, he or she receives an equal amount of liquidity token (eETH). eETH is a native re-staken mobile pledge token that empowers holders to obtain pledge rewards generated by underlying pledge ETH, while maintaining liquidity and participating in various DeFi.

These rewards are automatically recombined within the Ether.fi protocol, thereby maximizing the earning potential of eETH holders.

Ether.fi adopts a liquid staking mechanism, allowing users to pledge their ETH without long locking. Compared with traditional staking methods, this feature provides users with greater flexibility and liquidity.

Governance token: ETHFI is a governance token that drives the ether.fi network. By holding ETHFI tokens, users can vote on proposals, upgrades, or parameter changes, ensuring a decentralized and community-driven governance model and ensuring a more inclusive and democratic approach to protocol management.

Why choose Ether.fi?

Ether.fi offers several key advantages for users who want to participate in the decentralized stake in the Ethereum blockchain, including:

(1) Strong liquidity

It allows users to pledge funds of less than 32 ETH to Ether.fi, and can automatically obtain equal amounts of eETH or weETH minted by the protocol. These tokens can be traded freely and can be quickly exchanged back to ETH or other crypto assets when liquidity is required.

(2) Multi-scene application

eETH and weETH have the attributes of ERC-20 tokens. In addition to holding to obtain liquidity pool returns, they can also be used in various DeFi platforms, such as lending, liquidity provision or as trading media, expanding users in Ethereum Operational scope and potential benefits in the ecosystem.

(3) Pledge reward + re-pled income

Users can re-stake to EigenLayer, Symbiotic and Karak through Ether.fi. These ETHs can receive corresponding pledge rewards, which will automatically accumulate and grow compoundly, bringing more to users over time. profit.

Through the above advantages, Ether.fi aims to make users in the Ethereum ecosystem more convenient, efficient and decentralized staking, and maximize the staking benefits.

Stable growth trajectory

Explosive growth of TVL: As of January 14, 2025, EtherFi's TVL (total locked value) has reached ~8.5 billion US dollars, making it the fourth largest project in the entire ETH network, including L2, and has excellent security. Among all liquid staking projects, the highest adoption rate and the fastest growth rate.

Reliable team background

Ether.fi completed a $5.3 million financing on February 2, 2023, led by North Island Ventures, Chapter One and Node Capital, and BitMex founder Arthur Hayes participated. On February 27, 2024, Ether.fi completed a $27 million Series A financing led by Bullish and CoinFund, demonstrating the agreement's rapid expansion trend and investor confidence.

Currently, Ether.fi has released information on five team members in official documents. Founder Mike Silagadze is currently the CEO of DeFi fund company Gadze Finance and the founder of Canadian higher education platform Top Hat (2021 Series E financing of US$130 million) people. Judging from the successful entrepreneurial experience of the founder of Ether.fi, he has knowledge and experience in the fields of enterprise operations and encryption, and is able to efficiently execute and expand the scale of EtherFi, ensuring that the operation and innovation of EtherFi can meet the needs of the crypto ecosystem.

In addition, the Ether.fi team adheres to 3 guiding principles:

First, decentralization is the main goal and you will never compromise on the unmanaged and decentralized nature of the protocol.

Second, the Ether.Fi protocol has a sustainable revenue model and is involved in it for a long time, and the team thinks and plans with a long-term perspective.

Third, adhere to professional ethics and will always do the right thing for the Ethereum community.

Pledge income composition

Ether.fi pledge income mainly consists of the following parts:

(1) Ethereum network staking reward: Currently, the annualized rate of return on Ethereum staking is around 2.7%.

(2) Re-pled income: Ether.fi re-polizes the user's pledged ETH to other protocols or verification nodes such as EigenLayer and Symbiotic, thereby obtaining additional rewards. These rewards may be issued in the form of tokens of the project, such as Eigen, ETHFI, etc., or may be governance tokens or earnings credit points in other protocols.

(3) MEV income: In the Ethereum network, nodes can obtain fees during the transaction packaging and sorting process, including priority fees given by users and MEV income. As a node operator, Ether.fi will give back some of the transaction sorting income to the pledged users, but this part of the income has certain uncertainty, depending on the activity level of the Ethereum network and transaction congestion.

(4) Liquidity mining reward: In the liquidity pool of Ether.fi, users will obtain corresponding liquidity tokens after pledging ETH, such as eETH or weETH. These tokens can participate in liquidity mining, providing liquidity in other DeFi protocols, thereby earning additional mining rewards. The reward form is usually the governance token or transaction fee sharing of the relevant DeFi protocol.

(5) Airdrop and other incentives: Ether.f will launch airdrop activities or other incentives from time to time to attract users to participate in the staking. For example, for a certain amount of ETH pledged in a specific period, each pledged in a certain amount of ETH will increase the airdrop prize pool by a certain proportion of the total token number, and users have the opportunity to receive additional airdrop rewards for ETHFI tokens or other cooperative projects.

Conclusion: According to the mainstream and secure ETH LRT scheme on the market, Ether.fi provides one of the highest yields.

Estimation of regular pledge income

In the current mainstream ETH staking agreement, Ether.fi's Symbiotic pool has the highest yield rate on the entire network, which can reach APR 6–10% according to estimates.

Symbiotic is EigenLayer's biggest competitor, Ether.fi x Symbiotic can dig four times:

-ETH comes with a 2.7% yield;

-Ether.fi points;

-Symbiotic points;

-Veda points.

Note: The above APR converts the potential value of the above points, and can be flexibly deposited and withdrawn, and funds can be withdrawn at any time if needed.

It can be stored directly on the Ether.fi front end, and the portal is: https://app.ether.fi/weeths .

summary

Ether.fi's eETH's DeFi application scenario design makes it have more DeFi application directions and upper-level revenue superposition mechanisms to achieve better expansion and allow more users to participate in Ether.fi. Overall, Ether.fi, as a derivative product in the LSD track, has innovative design in key management. Its yield advantages and ease of use have helped it obtain considerable TVL, which is the best return for current ETH. Reserve the place.