The concept of re-staking is very popular, and many projects provide applications and services based on Restake.
Re-staking refers to a person who uses liquid staking token assets to stake with validators on other blockchains to obtain more benefits.
For example, you can pledge ETH in the LIDO protocol to obtain stETH tokens. The amount of stETH you hold can be used as a certificate to hold the corresponding amount of ETH, and you can participate in other project activities and continue to earn profits.
When staking and hosting ETH in the protocol, there are problems such as incomplete decentralization and semi-custodianship, and there is a certain degree of opacity. The ether.fi protocol complements the decentralization issue very well.
Currently, ether.fi has launched the Binance launchpool event, which is quite popular.
①What is Ether.fi?
Ether.fi is a decentralized, non-custodial delegated staking protocol with Liquid Stake tokens.
One of the most distinguishing features of Ether.fi is that stakers control their keys, allowing participants to retain control of their keys while staking on a proxy
Stakeholders have control over their keys throughout the entire staking process from creation to redemption, and can exit the validator at any time to reclaim their ETH, preventing node operators from doing a great job of “Your keys, Your crypto” .
Ether.fi reduces the risk of staking for users, eliminating the need for node operators to maintain wallet connections or rely on trusted intermediaries for coordination.
At the same time, the mechanism also allows the creation of a node service market where stakeholders and node operators can register nodes to provide infrastructure services.
②Ether.fi’s operating mechanism
There are multiple users and stakeholders on Ether.fi, including pledgers who are also bond holders, pledgers who only hold eETH and LST (liquid pledge tokens), node operators and node service users.
The Ether.fi roadmap is divided into three stages: delegated staking, liquidity pool and node service. The role positioning of different user roles at different stages also continues to change.
Pledgers who pledge multiples of 32 ETH can obtain the role of node operator through application and review, and obtain corresponding benefits in the later stage;
Stakers who hold less than 32 ETH, or who do not want the responsibility of monitoring validator nodes, can participate in staking by minting eETH in the NFT liquidity pool.
③How to participate in Ether.fi?
Ordinary users holding less than 32 ETH can directly pledge ETH to obtain eETH and APY income; staking on ether.fi will automatically be pledged by Eigenlayer again to obtain corresponding income.
LPs can also be pledged in the protocol to provide liquidity to the system and obtain multiple points.
Early interactive users earn loyalty points by staking ETH, recommending friends, completing tasks, etc., and the points will be airdropped accordingly.
These points correspond to ETHFI short investment qualifications.
④Future opportunities for Ether.fi
According to defillama data, the TVL pledged by Ether.Fi has reached US$3 billion, which has increased significantly after February this year.
2024 is regarded as the year of staking airdrops. Many users look forward to completing interactions through staking and receiving airdrops for future projects.
Decentralized, non-custodial staking solutions may be one of the future infrastructures of Ethereum.
Following the principle of decentralization, stakers are kept in control of their own keys rather than handed over to node operators.
Users do not have to worry about node risks when staking in the project, and it is truly a decentralized and equal participation method for everyone.
From this perspective, the decentralized, non-custodial entrusted pledge protocol Ether.fi may take a different route, stand out from many protocols, be applied in more scenarios, and gain more room for growth.
In addition, Ether.fi has received a total of US$27 million in financing from institutions such as Bullish and coinfund. With financial and technical support, there will be more opportunities to take off.
The ETHFI token will be listed on the Binance exchange on March 18, with an OTC price of about US$3. You may be able to pay attention to the development of the project in the long term.
After all, the bull market is about to start, and more new projects and new narratives are needed to promote the continued development of the market.
The above is just my personal opinion, no investment advice. I am Chuxiaolian, and I am paying attention to the encryption market and web3.
