Decentralized finance (DeFi) protocol ether.fi has rolled out a liquid staking token (LST) that allows users to generate rewards by staking ether (ETH).
Decentralized finance refers to financial activities, like lending and borrowing, carried out on the blockchain without traditional intermediaries. The sector emerged in early 2020, in a period which was dubbed DeFi summer, and soon became a central driving point for blockchain adoption. However, the frenzy has partly fizzled out due to the crypto winter and high-interest rates.
The staked ether can automatically being restaked on EigenLayer. EigenLayer is one of the most popular restaking protocols with more than $210 million in total value locked, according to DefiLlama.
Users that stake ether on ether.fi will receive the protocols LST (eETH), which can be used to generate further yield across the DeFi ecosystem. Users will retain control of their private keys throughout the process.
In March, ether.fi raised $5.3M in a seed round led by North Island VC with the capital used to develop and release the eETH token.
The protocol has deals in place with Balancer, Aura, unshETH, Gravita, Maverick, Pendle and LayerZero, enabling users to benefit from using eETH on the partnered platforms.
“Our goal is to help support Ethereum decentralization by making non-custodial staking easy and accessible.” said Mike Silagadze, CEO of ether.fi. “We are betting on Ethereum as the main smart contract platform that will ultimately become the value settlement layer for the world. By launching eETH we aim to give users access to safe staking and restaking.”
“We are excited that ether.fi is building on EigenLayer and believe that native restaking is essential to help grow the Ethereum trust layer and support decentralization” said Sreeram Kannan, CEO of EigenLayer.
eETH is currently available to users on the Goerli testnet and will be available on the mainnet on Nov. 6.
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