[Who needs off-ramps? Ether.fi plans to launch Visa card for Crypto Degens]
Liquid re-staking startup Ether.fi has launched its latest product, Ether.fi Cash, designed to help "paper rich" crypto enthusiasts convert blockchain investments into usable funds.
Ether.fi Cash is a mobile wallet and Visa credit card that leverages decentralized finance (DeFi) investing by borrowing against USDC (a USD-pegged stablecoin) and paying back directly in cryptocurrency.
Mike Silagadze, founder of Ether.fi, said: "Our mission is to build a set of integrated applications to make DeFi truly available to ordinary people. Cash is your consumption account, and our ideal is that you no longer need to transfer funds from the block "Transfer out of the chain." "Transfer out" here refers to the tedious process of converting between cash and cryptocurrency, often accompanied by high fees.
Currently, Ether.fi is known for routing assets to EigenLayer. EigenLayer is a re-staking platform based on Ethereum that helps investors earn rewards to support emerging blockchain services. EigenLayer has attracted approximately $18 billion in deposits over the past year, with more than $5.5 billion coming from users who initially deposited funds into Ether.fi in exchange for eETH tokens, which are similar to receipts for EigenLayer deposits and can Trade on the crypto market like any other asset.
In addition to the “Stake” plan, Ether.fi also has the “Liquid” plan, which allows users to deposit funds into vaults that follow selected trading strategies.
Ether.fi Cash cardholders can borrow against their Stake or Liquid deposits and have them automatically repaid using the interest on those investments. Users can also directly convert assets into USDC to achieve instant settlement.
Silagadze said: “With Cash, you transfer funds into Ether.fi once and then you never need to transfer them out again because you can save, invest and spend all your funds. You can get paid in cryptocurrencies and live normally Without having to plug into the traditional financial system.” Ether.fi aims to provide a crypto rewards program similar to Chase and other traditional card providers. It also plans to differentiate itself from traditional credit cards by following the DeFi market’s rate structure instead of their standard 15-30% APR.
"This is a real credit card," Silagadze emphasized.
He expects Cash to launch to consumers in September, but it may not be available in some large markets, including the U.S., due to regulatory reasons.
Using cryptocurrency as cash will always have its own unique complexities, from market considerations to tax implications.
“Originally, this is designed for crypto-native users, but if someone is thinking about becoming a true crypto enthusiast, a product like this might help them navigate that universe,” Silagadze said.
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