Ether.fi (ETHFI)
Ether.fi is a decentralized and non-custodial staking protocol that emphasizes the autonomy of stakeholders over their assets through permissionless decentralization. The protocol offers delegated staking services focused on security, ease of use, increased returns, and cost reduction through innovative revenue models and operational efficiencies. It was founded by Mike Silagadze and Rok Kopp.
Overview
Ether.fi is designed to give users control over their staked ETH keys. A unique feature of the protocol is the issuance of NFTs for each validator launched, adding a programmability layer to the staking infrastructure. The protocol functions in three phases: Delegated Staking, Liquidity Pool and eETH, and Node Services. These phases enable users to manage their keys, mint eETH tokens without overseeing a validator, and potentially enhance node services.
| Ticker | ETHFI |
| Category | Decentralized Finance (DeFi) |
| Website | https://www.ether.fi/ |
| @ether_fi | |
| Contract Addresses | |
|---|---|
| ethereum | 0xfe...eb Copied! |
| arbitrum-one | 0x71...27Copied! |
ether.fi Foundation
The ether.fi Foundation executes token holder decisions and manages the treasury and protocol. It maintains accountability through regular transparency reports to token holders, with governance guided by constitutional documents.
Features
Delegated staking
In the ether.fi system, Auction Contracts facilitate auctions to determine which node operators will run validator nodes. Node operators register their public keys and place bids in ETH. Once a staker deposits 32 ETH into the Auction Deposit Contract, an auction is triggered to identify the winning operator. Stakers can generate and submit encrypted validator keys, stored in IPFS, which node operators then download and decrypt. Upon acceptance, T-NFTs and B-NFTs are minted to the staker's wallet, and a Withdraw Safe Contract is established.
T-NFT and B-NFT
Stakers receive T-NFT and B-NFT tokens when establishing a validator node. T-NFTs are transferable, while B-NFTs are not. These tokens contain metadata about the validator node's details. Exiting the validator node allows the T-NFT to claim 30 ETH and the B-NFT to claim 2 ETH. The B-NFT also acts as insurance against slashing.
Permissionless withdrawals
Following Ethereum's upgrades, EIP-4895 allows for withdrawing staked ETH and validator rewards. Partial withdrawals extract rewards, while full withdrawals unstake the entire balance. The decentralized structure allows B-NFT holders to initiate validator node exits, and any party can trigger the redistribution of withdrawn funds.
Sharing protocol revenue
Ether.fi shares its protocol revenue among ecosystem participants, including auction fees, liquidity pool trading fees, and infrastructure service fees. Auction revenue enhances overall APRs for ether.fan holders.
Ecosystem
Solo stakers
Ether.fi uses Distributed Validator Technology (DVT) to enhance the security and functionality of validators, allowing solo stakers worldwide to participate. This reduces reliance on centralized data centers and lowers the barrier to entry for running a solo node to only hardware and utility costs.
Liquid
Liquid is a DeFi vault by ether.fi that allows users to deploy their eETH, weETH, or WETH across DeFi opportunities. Managed by Seven Seas, the vault adapts by incorporating new integrations over time to remain competitive in the DeFi landscape.
Tokens
ETHFI
The governance token ETHFI enables community members to participate in ether.fi's development. ETHFI holders can make decisions about the Grants Program, economic parameters, node operator approvals, and more.
ether.fi Staked ETH (eETH)
Ether.fi Staked (eETH) is a rebasing ERC-20 token representing a claim on ETH held by the ether.fi liquidity pool or staked in the Ethereum Proof-of-Stake system. It allows users to stake ETH for rewards and reinvest seamlessly in EigenLayer, with collaborations planned with various DeFi partners.
ether.fan
Ether.fan allows ETH staking to mint a fan NFT, which earns membership points and boosts rewards. Traits, flair, and membership tiers characterize these NFTs. Staking rewards are automatic, and protocol revenue benefits stakers and solo node operators.
Mining
Each ETH deposit through ether.fan mints a fan NFT that accrues staking rewards. These NFTs can serve various purposes, including future games and activities, and can be used to express support for Ethereum.
Upgrading
Users can upgrade fan NFTs by depositing additional ETH, with specific limits to maintain membership tiers and prevent system abuse.
Partnerships
Obol Labs
Ether.fi has partnered with Obol Labs, a developer of Distributed Validator Middleware, as an official DVT partner.
Aethos
Ether.fi announced a partnership with Aethos, employing their smart contract engine to ensure protocol security.
Redstone Oracles
Ether.fi has partnered with RedStone Oracles, investing in securing data oracles and protecting against network vulnerabilities.