According to Odaily, the Ether.fi Foundation has announced its first community proposal. The proposal aims to increase on-chain liquidity and treasury holdings of ETHFI. The proposal suggests using 50% of the protocol's income to purchase ETHFI. Initially, 5% of the monthly income will be used, with future growth to be determined by community voting. The income will come from Staking and Liquid vault. Any future product income for this purpose will be dealt with in subsequent votes. The purchased ETHFI will be used to establish a treasury and set up a liquidity pool on Curve, to increase the on-chain TVL of ETHF.
The Ether.fi Foundation's move is a strategic one, aimed at strengthening the financial stability of the protocol and boosting its on-chain liquidity. By using a significant portion of the protocol's income to purchase ETHFI, the foundation is effectively investing in its own future growth and stability. The decision to use 5% of the monthly income initially, with the potential for this to increase based on community voting, demonstrates the foundation's commitment to democratic decision-making and community involvement.
The income for this initiative will be sourced from Staking and the Liquid vault, two key components of the Ether.fi protocol. This approach ensures that the initiative is funded in a sustainable and responsible manner. The purchased ETHFI will be used to establish a treasury, providing a financial safety net for the protocol. Additionally, a liquidity pool will be set up on Curve, a decentralized exchange, to increase the on-chain Total Value Locked (TVL) of ETHF. This will further enhance the protocol's liquidity and overall financial health.