What is #Ether.fi ?
Ether.fi is a decentralized Liquid #Restaking protocol, allowing users to stake to grant liquidity on #ethereum and many other DeFi protocols such as Pendle Maverick, Curve... One of the distinctive features of ether.fi is that users who stake can hold their keys.
The ether.fi mechanism also allows for the creation of a node services marketplace where stakers and node operators can register nodes to provide infrastructure services and the revenue from these services will be Share with stakers and node operators.
How it works
Delegated Staking
Participating users will need a minimum of 32 ETH and comply with the following process:
User stakes #ETH into deposit contract on ether.fi. Once completed, a digitized safe is created accompanied by two NFTs (T-NFT, B-NFT) giving ownership of the withdrawal. For example, if you stake 32 ETH, T-NFT represents 30 ETH and B-NFT is SoulBound and represents 2 ETH. The only method to recover 2 ETH is when the validator is terminated or completely withdrawn.
B-NFT is used to provide a deduction for cut insurance and carries higher returns than T-NFT. However because of the higher risk and liability, it offers higher yields than T-NFT. Delegated Staking is also the complicated part of this protocol
Liquidity Pool and eETH
Those who participate but have less than 32 ETH or who do not want to monitor nodes can still participate in ether.fi Staking by mining eETH in the NFT liquidity pool. The liquidity pool contract includes a combination of ETH and T-NFT.
Mint and Burn Eeth
If liquidity is abundant, eETH holders can exchange it for ETH in the pool at a 1:1 ratio. If not enough liquidity exists, the exchange will begin exiting validators.
Run Node
Users can also run nodes under protocol approval through a centralized service operated by Ether.fi
Special features of the project
Users participating in staking generate and hold their ETH keys
With most other authorized staking protocols, staking participants deposit their ETH and are matched with a node operator. This creates a custodial or semi-custodial mechanism that puts stakers at risk.
With ether.fi, stakers can control their keys and retain custody of ETH while delegating staking to node operators
NFTs are minted for validators launching via ether.fi
This protocol will mint NFT for each validator launch, then eETH will be minted from the liquidity pool containing this NFT
These NFTs control 32 staked ETH and store validator-related metadata such as: geographical location, node operator, and any node services it is running. These NFTs can be used to create a programmable layer on top of the staking infrastructure (which will become more powerful in the future with integration with EigenLayer)
Stand out from your competitors
Không phải ngẫu nhiên mà Binance lựa chọn Ether.fi làm dự án Launchpool tiếp theo của sàn. Chúng ta có thể thấy dự án này đang đứng đầu trong các giao thức Liquid Restaking với TVL tạm tính ở ngày hôm nay là 2.46 tỷ USD (hơn 625k ETH). Vượt xa đối thủ cực lớn là Puffer Finance và tạm chiếm hơn 1/3 tổng TVL của các dự án thuộc mảng này (6.37 tỷ USD)
summary
With the recent craze called Restaking where participants can farm points to receive huge Airdrops, the upcoming listing of ether.fi will make this concept gain more attention in the near future. Of course, it is no longer new to those who have persisted in doing airdrops during the recent gloomy market period. But it also opens up an interesting topic when upcoming Liquid Restaking projects will be continuously listed on major exchanges.
