What is Ether.fi?
Ether.fi is a liquid restaking protocol designed to optimize the staking process on Ethereum by leveraging EigenLayer. Unlike traditional staking, which requires users to lock up their ETH, Ether.fi allows users to stake their ETH or Liquid Staking Tokens (LSTs) and receive eETH in return. This eETH can be used across various DeFi applications, providing liquidity and flexibility while still earning staking rewards.
Ether.fi's integration with EigenLayer allows users to restake their assets, enhancing security for other protocols and maximizing staking rewards. By participating in restaking, users contribute to the security of additional decentralized services, such as Layer 2 solutions and decentralized applications (dApps). This process not only secures the Ethereum network but also provides higher returns for stakers.
The protocol also features a node services marketplace, connecting stakers with validators to ensure decentralized operations. This marketplace supports the operation of solo nodes through initiatives like Distributed Validator Technology (DVT), reducing the barriers to entry for node operators and promoting a more decentralized Ethereum network.
Ether.fi governance is managed through the ETHFI token, which empowers holders to vote on important protocol decisions, including treasury management and ecosystem development. The tokenomics of ETHFI are designed to ensure a balanced distribution among the DAO treasury, core contributors, community airdrops, and investors, fostering active participation and sustainable growth.