$ETHFI - The latest project on Binance Launchpool

Here are some of the most important things you need to know about #ETHFI to help you decide if you should invest on this project or not. I'm sure you've heard about it from Binance Announcement and from other Square creators. But I decided to wait first for Binance's Research Report and read all about them from Ether.fi website and whitepaper before I wrote this article.

BNB TIP: ✨Before anything else, if you are a $BNB holder, you don't need to worry about missing free tokens from the Launchpool by keeping your BNB in the BNB Vault. You will earn from Binance Simple Earn program and you will never miss a single token from Launchpool projects.

To proceed... unfortunately, there's nothing much to read about #ETHFI from the Research Report uploaded by Binance. In fact, there's zero information about #ETHFI specifically on Ether.fi's website and social media posts. 🙈🙉

So my first impression is that this project doesn't seem to be shrouded with even just a little bit of hype, which is very important to promote a token (but not too much though). Even just a simple tweet about ETHFI, the developer themselves didn't bother to waste time and talk about it. They don't even have an account yet here at Binance Square. 🤷

So this project as of the moment may not be worth much of our attention, 🙄 and investing on ETHFI once listed is still far from being considered potentially profitable. 🤔

But since I hold BNB, I will still be getting free ETHFI during the entire Launchpool farming period no matter what. 🤭

SUMMARY

In a nutshell, Ether.fi is a new staking protocol on #Ethereum which allows you to earn more from staking $ETH through their Liquid Staking Token (LST) called eETH. Their business model is basically increasing profitability in staking ETH and through restaking of eETH, which results to additional rewards and boosted returns. Their emphasis is on security since you retain control of your keys, and further decentralization of Ethereum.

ETHFI comes into play as their native utility and governance token for their staking protocol.

That's all there needs to be said about ETHFI unfortunately. 🤐

TECHNICAL SPECIFICATIONS

👉 Token Name: Ether.fi
👉 Token Symbol: ETHFI
👉 Maximum Supply: 1,000,000,000
👉 Launchpool Allocation: 20,000,000 (2%)
👉 Circulating Supply upon Listing: 115,200,000 (11.52%)

TOKEN ALLOCATION

This is the most crucial part and the only means for us to determine its future value. It's hard to guess how much will be its initial listing price due to lack of vital information. But since there's not much of use for this token except for governance, and given the maximum supply and its tokenomics, I won't peg the price of this token beyond a tenth of a dollar (≤$0.10).

Though I hope I'm wrong so that my free tokens won't be that worthless at the end of the farming period. 🤑

Anyhow, their token allocation doesn't seem to spark any interest on potential buyers like me. Unless you are an ETH lover and you want to stake all your Ether with them. Personally, comparing the 2% Launchpool allocation with their allocations for Airdrop (11%), Investors & Advisors (32.50%) and Team (23.26%), I wouldn't even dare to lock up my $FDUSD with them for a single day.

STAKING RISK FACTORS (FOR ETH HODLERS)

There are a couple of primary factors you need to consider if you want to stake your ETH with them. First is the smart contract risks, which according to their whitepaper, has been "crafted carefully, many times audited, and thoroughly tested" yet "there always exist risks in interacting with smart contracts on the Ethereum network."

Second and most important is the staking and unstaking processes. It's so easy to stake, but is the unstaking all worth the wait? 😴

According to their whitepaper, when you stake your ETH, you will be issued their LST or Liquid Staking Token (eETH) which is then natively restaked into the EigenLayer's Liquid ReStaking Strategy contracts. One needs to understand though that restaked assets are "non-transferrable, non-usable in DeFi, and require 7 days withdrawal period" in order for them to be redeemed back to LSTs. And there's another delay to redeem back your ETH coming from your LSTs.

Doesn't sound too good especially if you are in a hurry to dispose of your ETH should a major price fall suddenly occurs. 🥺

SO WHERE DO WE GO FROM HERE?

Here's my opinion (but not an advise), I think I wouldn't want to stake my FDUSD to earn a little ETHFI with not much of use and value as of this moment. I would make more from Binance Simple Earn Program by converting my FDUSD to USDT and subscribe the whole amount. I still got my BNB locked up at BNB Vault anyway so I will still be getting some of this token from farming, but for what purpose I don't know. Maybe to turn it to an instant free cash upon listing, or just HODL for what the future may hold for this project. 🙏

Maybe before the end of farming period there will be more data available about this token, so I might do a follow up post later. 🤙


PROTECT YOUR FUNDS FROM SCAMMERS

Binance has made it very clear that they will be the first exchange to list ETHFI and will only be available after the Launchpool farming ends and when the listing starts on the 18th of March 12:00 UTC. So anyone offering this token for sale before then is guaranteed a scam.

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