Organization dedicated to advancing the development of the Ether.fi protocol, Ether.fi Foundation announced the launch of its first community proposal. This proposal outlines a plan to allocate up to 50% of the protocol’s revenue towards the purchase of ETHFI tokens.
In the initial phase, 5% of the monthly income will be allocated for this purpose, with any future adjustments subject to community voting. This income is generated from staking and liquid vaults. Any revenue from new products used for similar purposes will also be determined through subsequent voting. The acquired ETHFI tokens will be utilized to establish a treasury and inject a liquidity pool on Curve, aimed at enhancing the Total Value Locked (TVL) of ETHFI.
The goal of the proposal is to increase ETHFI liquidity, thereby bolstering the ecosystem by enhancing ETHFI’s treasury holdings and injecting liquidity into Curve. This is expected to enhance market dynamics surrounding ETHFI.
Voting is currently underway on the Snapshot platform and is set to conclude on June 24th. As of now, the proposal has garnered overwhelming support, with approximately 99.8% of votes in favor.
ETHFI functions as the governance token for the Ether.fi network, a decentralized, non-custodial Ethereum staking protocol. Holders of ETHFI have the authority to oversee key aspects of the protocol and play a role in shaping the growth strategy of weETH, which is the wrapped, non-rebasing version of Ether. fi’s Liquid Restaking token eETH. Serving as the governance token for both eETH and weETH holders, ETHFI enables users to actively participate in determining the protocol’s direction.
What Is Ether.fi?
Ether.fi operates as a decentralized finance (DeFi) platform on Ethereum, enabling lending, borrowing, and yield farming through smart contracts. Users can earn interest by lending their cryptocurrency assets or borrow assets by collateralizing their own. Furthermore, the platform supports yield farming, allowing users to earn additional rewards by providing liquidity to different pools.
Operating under a decentralized autonomous organization (DAO) framework, users possess the ability to engage in governance and decision-making processes on the platform through voting mechanisms.
Currently, Ether.fi is planning to launch a credit card, Ether.fi Cash, designed for off-ramping cryptocurrencies, various transactions, and borrowing. The platform securely holds cryptocurrency assets in the Cash account using the non-custodial digital asset storage platform Gnosis Safe. When funds are utilized, they are withdrawn from Gnosis Safe without incurring gas fees or requiring a waiting period.
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