Ether.fi (ETHFI)

Staking and Liquid Staking

Ether.fi lets users stake their ETH in a decentralized, non-custodial way, meaning they keep control of their private keys. When users stake ETH, they receive a liquid staking token called eETH, which represents their staked assets and earns Ethereum consensus rewards. This token can be used in other DeFi activities like trading, lending, or yield farming to earn extra rewards.

Governance

The native token ETHFI is used to govern the protocol. Token holders can vote on decisions such as protocol upgrades, fee structures, and staking parameters, helping shape the future of the platform.

Restaking and Yield

Ether.fi supports restaking on platforms like EigenLayer, allowing users to earn additional yields beyond regular staking rewards. This helps maximize returns while maintaining liquidity and control.

Decentralization and Security

The protocol uses Distributed Validator Technology (DVT) to ensure users keep custody of their validator keys, reducing risks. It also supports permissionless node operation to improve Ethereum’s security and decentralization.

DeFi Integration

The liquid staking tokens (eETH) can be used across various DeFi platforms for lending, borrowing, or providing liquidity, enabling users to earn more from their staked ETH.

In short, Ether.fi provides a way to stake ETH securely, keep control of your assets, earn rewards, and use your staked tokens in DeFi, all while participating in the governance of the protocol.

Pros

• Supports multi-token staking, allowing users to stake various Ethereum-based tokens.
• Enables liquid staking with native restaking through EigenLayer technology, increasing potential rewards.
• Users retain control of their staked ETH keys, which is appreciated by the community.
• Offers a user-friendly interface with clear notifications and validator monitoring.
• High total value locked (TVL), showing strong user trust and liquidity.
• Provides opportunities to use staked assets (eETH) in DeFi for additional yield.
• Backed by significant funding and partnerships, indicating strong project support.

Cons

• The platform can be complex, with features ranging from easy to advanced, which might be challenging for beginners.
• Exposure to risks related to EigenLayer and smart contract vulnerabilities inherent in DeFi protocols.
• Some users may find the variety of staking options and governance mechanisms overwhelming.
• Market fluctuations and token price volatility can affect rewards and token value.

Ether.fi combines innovative staking with DeFi opportunities, making it attractive for users looking to maximize Ethereum staking rewards while maintaining control.

Founders

Ether.fi was founded by Mike Silagadze and Rok Kopp. Mike Silagadze is also the CEO of Ether.fi.

Background

Mike Silagadze has experience as a founder and CEO in other tech companies and is active in the crypto and startup communities. Rok Kopp is a co-founder and angel investor.

These two started Ether.fi in 2022 to create a decentralized staking protocol that gives users control over their staked ETH keys.

Investors in Ether.fi

• Edge Capital: A notable investor that has been re-staking ETH with Ether.fi since early 2024. They appreciate Ether.fi's non-custodial approach and transparent platform, which gives their investors confidence while earning reliable rewards.

• Institutional Investors: Ether.fi offers secure, scalable ETH staking with transparency and custom custody integrations, attracting large institutional allocators who demand high security and yield optimization.

• Community and DAO Participants: The project involves a community and DAO structure where investors and members can participate in governance and discussions.

Ether.fi focuses on long-term partnerships and ethical principles, aiming to build trust and sustainability with its investors.

Halal Status of Ether.fi

Yes, Ether.fi is considered halal. It is a decentralized, non-custodial liquid restaking protocol on Ethereum, which mainly offers utility through staking and restaking ETH to earn rewards. Since it operates on Ethereum—a platform widely regarded by Muslim scholars as halal due to its utility token nature—Ether.fi aligns with Shariah principles when used for its intended purposes.