Ether.fi Staked BTC (EBTC)

Use Case of Ether.fi Staked BTC

Ether.fi Staked BTC is a Bitcoin-backed liquid restaking token that lets users deposit Bitcoin assets like LBTC or WBTC to earn rewards from both Bitcoin staking and restaking on Ethereum-based protocols. It simplifies earning yield by combining staking and restaking rewards into one liquid token. This token can be used across multiple blockchain networks and integrated with over 400 DeFi protocols, allowing holders to maximize earnings while maintaining liquidity and control of their assets.

Advantages

• Ether.fi Staked BTC is a Bitcoin-backed liquid restaking token that allows users to earn yield from both Bitcoin staking and restaking protocols simultaneously.
• It simplifies managing staking and restaking by providing a single liquid token representing staked assets and accumulated rewards.
• The token is non-custodial, meaning users keep full control of their assets.
• It integrates with over 400 DeFi protocols, allowing users to use their staked BTC across various decentralized finance platforms.
• No lockups are required, providing liquidity and flexibility.
• It supports multiple blockchain networks with the same contract address, enhancing compatibility.
• Users can earn additional rewards and loyalty points beyond standard staking yields.
• The token is backed by LBTC through a partnership with Lombard, offering dual yield generation.

Disadvantages

• The price of Ether.fi Staked BTC can fluctuate and has shown some recent declines, indicating market volatility.
• Trading volume can vary, sometimes being low, which might affect liquidity on certain exchanges.
• The system relies on partner endpoints and integrations, which can occasionally cause short-term issues or syncing delays.
• As a relatively new product, it may have less market recognition compared to more established tokens.

Founders of Ether.fi Staked BTC

Ether.fi Staked BTC is part of the ether.fi ecosystem, which was founded by Mike Silagadze and Rok Kopp. Mike Silagadze is also the CEO of ether.fi and has a background in software development and decentralized finance solutions. The project focuses on non-custodial, decentralized staking protocols that allow users to retain control of their keys while earning staking rewards.

Investors in Ether.fi Staked BTC

Investors in Ether.fi Staked BTC include a mix of individual and institutional participants who value non-custodial, decentralized staking solutions. Notably:

• Edge Capital has been re-staking ETH with Ether.fi since early 2024, trusting its non-custodial and transparent platform to earn reliable rewards.
• White Star Capital is an institutional investor that supports Ether.fi as a leading liquid restaking protocol, recognizing its innovation in restaking and economic security for crypto infrastructure.
• General investors can buy Ether.fi Staked BTC easily on platforms like Bitget and Uniswap V3, using various payment methods including bank transfers and cards.
• Core contributors, partnerships, and other investors hold a significant portion of the governance token $ETHFI, which supports the protocol’s development and security.

These investors appreciate Ether.fi’s focus on decentralization, self-custody, and integration with DeFi, which allows them to earn staking rewards while maintaining control over their assets.

Halal Status of Ether.fi Staked BTC

Ether.fi Staked BTC is considered halal because it is a decentralized, transparent project that brings Bitcoin into the Ethereum ecosystem without involving interest (riba) or loans. The staking process supports the blockchain network by validating transactions, which is seen as doing a job rather than earning interest. The project is open-source, fair-launched, and does not engage in haram activities.

Reasoning

• Staking crypto like Ether.fi Staked BTC involves locking tokens to help secure and maintain the blockchain, which is permissible as it is a service rather than a loan.
• The rewards come from supporting the network, not from interest or gambling.
• The project maintains transparency and fairness, with no pre-mining or founder advantages.
• Similar to Ethereum staking, which many scholars consider halal, Ether.fi Staked BTC follows a proof-of-stake model that aligns with Islamic finance principles.