ether.fi ETHFI: Liquid Restaking for Ethereum

Ethereum staking has matured—but there’s still room for innovation. ether.fi brings something fresh: a non-custodial, liquid restaking protocol that gives ETH stakers more flexibility, yield, and control. With ether.fi, when you stake ETH, you receive eETH — a liquid staking derivative you can use in DeFi — while the protocol restakes underlying ETH to boost returns via EigenLayer.

At the center of this ecosystem is ETHFI, the governance token that steers protocol decisions, rewards stakers, and ensures alignment across participants. In this guide, we’ll unpack how ether.fi works, the role and tokenomics of ETHFI, use cases, adoption metrics, risks to watch, and how you can get involved. Whether you’re an ETH holder, DeFi user, or protocol builder — understanding ETHFI is key to unlocking the restaking future.

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What Is ether.fi (ETHFI)?

ether.fi is a next-generation Ethereum staking protocol that introduces a unique non-custodial staking model designed to give stakers full control over their validator keys. Unlike traditional liquid staking services, where users surrender key management to a centralized entity, ether.fi empowers participants to stake ETH while maintaining ownership of their validator credentials. This approach ensures users retain ultimate control over their funds and validator operations, providing stronger security and aligning with Ethereum’s decentralized ethos.

At its core, ether.fi offers liquid restaking, an innovation that layers yield opportunities through EigenLayer, while also providing a liquid staking token (eETH) that can be freely used across decentralized finance (DeFi) protocols. Together, these features position ether.fi as a powerful alternative to legacy staking platforms like Lido or Rocket Pool.

Here are core features & key components:

• Non-custodial liquid restaking protocol on Ethereum. That means users stake ETH but retain control over their validator keys, instead of giving up that control to a third party.
• Users get a liquid staking token (called eETH) when they stake ETH via ether.fi. eETH accrues staking rewards and is restaked through EigenLayer to earn additional yield.
• Governance / Utility token: ETHFI is the governance & utility token. Token holders can vote on protocol upgrades, key economic parameters (fees, restaking strategy, etc.), and treasury decisions.
• Tokenomics: total supply is 1,000,000,000 ETHFI. Circulating supply at listing was ≈ 115.2 million (~11.5%) of the total.
• Revenue / Rewards: Some portion of protocol revenue is used for buybacks, staking rewards, etc. Also, staking ETH holders get loyalty or reward boosts depending on usage.

Non-Custodial Staking: Retaining Validator Control

Traditional staking protocols typically require users to delegate control of validator keys to a third party, exposing them to counterparty risks. ether.fi’s non-custodial design flips this model by allowing stakers to maintain ownership of their validator keys even as they participate in the protocol.

• Validator Key Ownership: Users create their own validator keys, which remain in their possession at all times.
• Enhanced Security: Because ether.fi never takes custody of private keys, stakers are protected from potential protocol-level breaches or centralized misuse.
• Full Autonomy: Users can exit or modify their staking position without requiring permission from a centralized operator.

This design ensures that staking through ether.fi aligns with Ethereum’s decentralized principles while offering the convenience of a managed staking experience.

Liquid Restaking with EigenLayer

One of ether.fi’s most compelling innovations are liquid restaking, which integrates directly with EigenLayer, a protocol that allows staked ETH to be “restaked” to secure additional networks and services. By participating in restaking, users can earn multiple layers of yield on their staked ETH:

• Base Staking Rewards: Earned from Ethereum’s consensus layer.
• Restaking Rewards: Additional incentives for providing security to EigenLayer’s active services.

This dual-yield mechanism significantly enhances staking returns without requiring users to lock up new capital, making ether.fi one of the most capital-efficient staking options available.

eETH: A Composable Liquid Staking Token

When users stake ETH through ether.fi, they receive eETH, a liquid staking token that represents their staked and restaked ETH. eETH maintains a 1:1 relationship with the underlying ETH while accruing rewards, making it an attractive asset for DeFi strategies.

Because eETH is fully composable, it can be deployed across a wide range of DeFi applications such as lending, borrowing, yield farming, and trading. This allows stakers to compound their rewards by putting eETH to work while continuing to earn staking and restaking yields.

Differentiators from Traditional Liquid Staking

Protocols like Lido and Rocket Pool dominate Ethereum’s liquid staking landscape, but they typically require relinquishing validator control or operating with varying degrees of centralization. ether.fi stands apart through:

• True Non-Custody: Users retain validator keys, reducing trust requirements.
• Built-in Restaking: Native EigenLayer integration provides additional yield opportunities.
• Enhanced Flexibility: eETH’s DeFi composability enables diverse earning strategies beyond simple staking.

By combining self-custody, liquid restaking, and DeFi composability, ether.fi delivers a next-generation staking experience that maximizes rewards while staying true to Ethereum’s decentralized vision.

ETHFI Token: Governance, Utility & Structure

The ETHFI token powers the ether.fi ecosystem, functioning as both a governance and utility asset that aligns stakeholders with the long-term growth of the protocol. Beyond being a governance token, ETHFI plays a central role in incentivizing participation, distributing protocol revenue, and rewarding active community members. By combining decision-making rights with economic benefits, ETHFI creates a balanced framework where users, validators, and contributors all share in ether.fi’s success.

Governance: Proposals, Voting, and Protocol Direction

ETHFI holders are at the heart of ether.fi’s decentralized governance model. Token holders can propose and vote on key protocol decisions, shaping the evolution of the staking and restaking ecosystem. Governance proposals can cover a wide range of topics, including:

• Protocol Upgrades: Adjustments to staking mechanics, restaking integrations, or smart contract parameters.
• Treasury Allocation: How funds in the DAO treasury are used for development, partnerships, or ecosystem grants.
• Incentive Programs: Decisions on reward rates, staking tiers, or liquidity incentives for eETH.

Voting power is directly proportional to the amount of ETHFI held or staked. This ensures that those most invested in the protocol’s success have a meaningful voice in its direction while still enabling broad participation from smaller token holders.

Utility Beyond Governance

ETHFI offers significant utility beyond governance, giving holders multiple ways to engage with the ecosystem and earn rewards.

• Staking ETHFI: Holders can stake their tokens to unlock different membership levels that provide benefits such as boosted staking rewards, early access to new features, and increased reward shares.
• Yield Boosts: Staked ETHFI can enhance the yield on eETH holdings or validator operations, rewarding those who actively contribute to the protocol’s stability.
• Access to Exclusive Opportunities: Higher staking tiers may unlock participation in special restaking pools, premium DeFi integrations, or new product beta programs.

This layered utility makes ETHFI more than just a governance token—it becomes a membership and reward mechanism that encourages long-term holding and engagement.

Tokenomics and Allocation

The ETHFI token is designed with a balanced tokenomics model to support sustainable growth and incentivize all participants. While specific numbers may evolve as the protocol matures, typical allocations include:

• DAO Treasury: A significant portion is reserved to fund ecosystem development, partnerships, and protocol upgrades.
• Contributors & Team: Tokens allocated to core developers and early contributors, usually with vesting schedules to ensure long-term alignment.
• User Incentives: Airdrops and liquidity incentives reward early stakers, validators, and eETH users.
• Investors: Strategic partners and seed investors receive allocations to provide capital for initial growth.

This distribution ensures that governance remains decentralized over time while rewarding those who help expand the ether.fi ecosystem.

Buybacks and Revenue Sharing

A key differentiator of ETHFI is its revenue-sharing mechanism. A portion of ether.fi’s protocol fees—generated from staking rewards, restaking yields, and DeFi integrations—are earmarked for buybacks and redistribution to ETHFI stakers.

• Buybacks: The DAO may use protocol revenue to purchase ETHFI on the open market, reducing circulating supply and supporting token value.
• Staker Rewards: Staked ETHFI holders receive a share of the collected revenue, creating a direct economic incentive to hold and stake the token.

By combining governance power, layered utility, and a revenue-sharing model, ETHFI ensures that every participant—whether a staker, validator, or DeFi user—has both a voice in decision-making and a stake in ether.fi’s financial success. This alignment of incentives makes ETHFI a cornerstone of the protocol’s long-term vision for decentralized, user-controlled Ethereum staking.

Use Cases, Products & Ecosystem

The ether.fi ecosystem extends far beyond simple ETH staking. By combining non-custodial staking, liquid restaking, and a growing suite of DeFi integrations, ether.fi empowers users to unlock multiple layers of yield and utility. From individual stakers and DeFi enthusiasts to institutions and enterprise clients, the platform offers products and incentives designed to meet diverse needs while staying true to Ethereum’s decentralized principles.

eETH and weETH in DeFi

The cornerstone of ether.fi’s ecosystem is eETH, the liquid staking token that represents staked ETH within the protocol. When users stake ETH on ether.fi, they receive eETH, which accrues staking and restaking rewards while remaining fully composable in DeFi. A wrapped version, weETH, is also available for protocols that require ERC-20 compatibility or advanced smart contract interactions.

These tokens unlock a wide range of DeFi opportunities:

• Liquidity Provision: Deposit eETH or weETH into decentralized exchanges (DEXs) and automated market makers (AMMs) like Uniswap or Balancer to earn trading fees.
• Lending & Borrowing: Use eETH as collateral on lending platforms such as Aave or Compound to borrow stablecoins or other assets while continuing to earn staking rewards.
• Yield Farming: Combine eETH with other tokens in liquidity pools to earn additional incentives and protocol rewards.

Because eETH continues to generate Ethereum staking yields and EigenLayer restaking rewards, users can stack multiple income streams by deploying it strategically across the DeFi ecosystem.

Institutional Staking Solutions

ether.fi is also building products tailored for institutional investors, such as funds, exchanges, and enterprises looking for secure and scalable staking options. Key institutional features include:

• Custody Integrations: Partnerships with trusted custodians and wallet providers allow institutions to stake ETH without compromising security or compliance.
• Non-Custodial Validator Control: Institutions can retain validator key ownership while outsourcing node operations to ether.fi’s infrastructure partners.
• Customized Reporting & Compliance Tools: Enterprise-grade analytics and regulatory reporting simplify participation for regulated entities.

These offerings make ether.fi attractive to institutional capital, unlocking larger pools of liquidity and strengthening the network’s validator base.

Borrowing & Credit Against Staked Assets

A key part of ether.fi’s future roadmap is the development of a “cash” or credit product that allows users to borrow against their staked assets. By using eETH or weETH as collateral, users will be able to access stablecoins or fiat-backed credit lines without unstaking their ETH. This creates a powerful liquidity option for stakers who want to leverage their assets for additional investments, real-world spending, or trading strategies while continuing to earn rewards.

Incentive & Loyalty Programs

The ETHFI token serves as the backbone of ether.fi’s incentive and loyalty programs. By staking ETHFI, users can unlock membership levels that provide a variety of benefits:

• Boosted Yields: Higher staking rewards on eETH or validator operations.
• Priority Access: Early entry to new products, restaking opportunities, or DeFi integrations.
• Revenue Sharing: A portion of protocol fees is distributed to ETHFI stakers, creating long-term earning potential.

These programs are designed to reward long-term participants, ensuring that those who actively support the network share in its growth and financial success.

By combining liquid staking tokens (eETH/weETH), institutional-grade services, and upcoming credit products, ether.fi has evolved into more than a staking platform—it is a complete Ethereum yield ecosystem. With incentives for both individual and institutional users, ether.fi bridges the gap between decentralized finance and traditional capital markets, creating a robust and sustainable foundation for Ethereum’s next generation of staking.

How to Get Started & Participate in ether.fi

ether.fi provides an easy, non-custodial way to stake ETH, earn restaking rewards, and participate in governance—all while keeping control of your validator keys. Whether you’re looking to buy the ETHFI governance token, stake ETH for eETH, or deploy your assets in DeFi, the platform offers multiple pathways to participate.

Acquiring ETHFI

The first step for many participants is obtaining ETHFI, the native governance and utility token of ether.fi. ETHFI is typically available through:

• Centralized Exchanges (CEXs): Major platforms such as Binance, Coinbase, or other top-tier exchanges often list ETHFI, allowing users to purchase it using ETH, USDT, or fiat currencies.
• Decentralized Exchanges (DEXs): ETHFI can also be traded on Uniswap or other Ethereum-based DEXs, giving users a decentralized way to acquire tokens.
• Token Launches & Incentives: Early supporters may gain ETHFI through community airdrops, staking rewards, or liquidity mining programs announced by the ether.fi DAO.

Once purchased, ETHFI can be stored in a Web3 wallet (like MetaMask) or a hardware wallet for enhanced security.

Staking ETH, eETH, and ETHFI

ether.fi’s intuitive interface makes staking straightforward for both newcomers and experienced DeFi users.

1. Connect Your Wallet: Visit ether.fi and connect a compatible Web3 wallet (e.g., MetaMask).
2. Stake ETH: Choose the amount of ETH to stake. The platform will generate a validator deposit while allowing you to retain control of validator keys.
3. Receive eETH: Once staking is confirmed, you’ll receive eETH, a liquid token representing your staked ETH plus rewards.
4. Restake (Optional): For higher yields, opt into EigenLayer restaking, which provides additional rewards for securing other decentralized services.
5. Stake ETHFI: To unlock membership tiers, yield boosts, and governance power, stake ETHFI tokens in the ether.fi dashboard. Staked ETHFI may also qualify for revenue-sharing rewards.

This flexible staking model allows you to earn rewards on ETH, compound yields through restaking, and participate in ETHFI incentive programs.

Using eETH and weETH in DeFi

Once you have eETH, you can deploy it across DeFi to generate extra yield. For protocols requiring ERC-20 compliance, ether.fi offers weETH, a wrapped version of eETH. Common DeFi use cases include:

• Liquidity Provision: Pair eETH or weETH with ETH or stablecoins on DEXs like Uniswap or Balancer to earn trading fees and liquidity incentives.
• Lending & Borrowing: Supply eETH as collateral on lending protocols such as Aave to borrow stablecoins or other crypto while maintaining staking rewards.
• Yield Farming: Participate in farming pools to compound rewards by earning additional protocol tokens.

Because eETH continues to accrue staking and restaking yields, it can generate stacked rewards even while being used as collateral or liquidity.

Participating in Governance

ETHFI holders are key stakeholders in ether.fi’s decentralized governance system. By staking ETHFI, you gain the ability to:

• Submit Proposals: Suggest protocol upgrades, parameter changes, or new incentive programs.
• Vote on Decisions: Influence treasury spending, fee structures, or integrations with other DeFi protocols.

Voting power is proportional to the amount of ETHFI staked, ensuring that committed community members help shape the platform’s direction.

Whether you’re staking ETH, using eETH in DeFi, or influencing the protocol’s roadmap through governance, ether.fi provides a comprehensive staking ecosystem. By acquiring ETHFI, staking assets, and engaging in governance, users not only earn rewards but also play an active role in the future of decentralized Ethereum staking.

ether.fi offers an ambitious evolution of Ethereum staking — blending self-custody, liquid restaking, and governance under a unified model. You can stake ETH, mint eETH, earn layered yields, and have a voice via ETHFI governance. But as always, rewards come with risk. Understand the architecture, monitor unlock schedules, diversify, and start conservatively. Curious? Try depositing a small amount, mint some eETH, and watch how ETHFI evolves.