ether.fi Staked ETH (EETH)

Staking and Earning Rewards

ether.fi Staked ETH lets you stake your Ethereum (ETH) to earn passive income through staking rewards. Unlike traditional staking, it provides a liquid token (eETH) that represents your staked ETH, so you keep liquidity and can trade or use it in DeFi apps while still earning rewards.

Liquid Restaking and DeFi Integration

The token supports liquid restaking, meaning your staked ETH can be restaked across multiple protocols like EigenLayer to maximize rewards. This also allows participation in various DeFi activities without locking your assets, maintaining flexibility and composability.

Control and Security

ether.fi offers a non-custodial staking protocol where users retain control of their private keys and validator operations are delegated to node operators. This ensures security and transparency while staking.

Governance and Community

The platform is governed by its community through a DAO, where token holders can propose and vote on upgrades, fees, and treasury use, aligning the protocol’s evolution with user interests.

Additional Utilities

Holding ether.fi Staked ETH can earn loyalty points and additional rewards from ether.fi and partner protocols. The token can be used in DeFi for liquidity provision, lending, or as collateral, enhancing its utility beyond simple staking.

Advantages

• ether.fi Staked ETH offers secure, scalable ETH staking with full transparency and custom custody integrations, making it suitable for institutions and individual users.
• Users maintain full control of their staked ETH keys, reducing risks associated with handing over assets to third parties.
• The platform provides a liquid staking token (eETH) that can be traded or used in DeFi, allowing liquidity while earning staking rewards.
• Automatic restaking through EigenLayer boosts rewards by enabling additional yield streams beyond standard staking returns.
• No lockups are required, and staked assets remain redeemable 1:1, offering flexibility and easy access.
• ether.fi integrates with over 400 DeFi platforms, exchanges, and OTC markets, enhancing usability and composability.
• The platform supports staking of ETH, BTC, and stablecoins, broadening earning opportunities.
• Community-focused features like loyalty points and governance via the ETHFI token promote user engagement and decentralized control.
• Entry levels are accessible, allowing staking from as little as 0.001 ETH for eETH minting to full 32 ETH validator setups.
• High security standards are maintained with audits and plans for bug bounty programs.

Disadvantages

• ether.fi Staked ETH is subject to smart contract and slashing risks, especially due to native restaking on EigenLayer, which could lead to loss of staked assets.
• Withdrawals have an additional 7-day delay, which may affect liquidity timing.
• The reward rate can fluctuate and may temporarily decrease if many new stakers join before more validators are onboarded.
• Market performance of ether.fi Staked ETH (EETH) can underperform compared to the broader crypto market and similar Ethereum ecosystem tokens.
• Some users report technical issues with wrapping or unstaking eETH tokens and fees associated with claiming rewards.
• The ETHFI governance token experiences price volatility due to market speculation and heavy unlocks.
• Running a full validator node requires 32 ETH and technical setup, which can be a barrier for some users.
• The platform relies on partner endpoints that may occasionally cause short-term point or data syncing issues.

This balance of features makes ether.fi Staked ETH a flexible and innovative staking option with strong DeFi integration and user control, alongside some technical and market-related considerations.

Founders of ether.fi Staked ETH

The founders of ether.fi Staked ETH are Mike Silagadze and Rok Kopp. Mike Silagadze serves as the CEO and is a key figure in shaping the project, while Rok Kopp is the Co-Founder and Chief Growth Officer. They started ether.fi in 2022 to create a decentralized, non-custodial ETH staking protocol that allows users to keep control of their keys while delegating validator operations to node operators.

Investors in ether.fi Staked ETH

The investors in ether.fi Staked ETH include a mix of venture capital firms, individual investors, and institutional backers who support the project’s vision and growth:

• Venture Capital Firms: North Island VC, Chapter One, Node Capital, Version One Ventures, Purpose Investment, CoinFund, Bullish, Amber Group, Bankless Ventures, OKX Ventures, ConsenSys, Foresight Ventures, Fourth Revolution Capital, Punk Ventures DAO, White Star Capital, Relayer Capital, Collider Ventures, Lvna Capital, Draper Dragon, Arrington Capital, and others.

• Individual Investors and Advisors: Notable figures such as Arthur Hayes, Stani Kulechov, Sandeep Nailwal, Defi Dad, Parallel, Will Price, leptokurtic, and MrBlock.

• Institutional Investors: Edge Capital is specifically mentioned as an institutional investor that has been re-staking ETH with ether.fi since early 2024, trusting their non-custodial and transparent platform.

• Early Investors and Advisors: They hold a significant share of the ETHFI tokens (32.5%), reflecting their early support for the project.

These investors contribute to ether.fi’s development, governance, and expansion in the Ethereum staking ecosystem.

Halal Status of ether.fi Staked ETH

• Ethereum and Staking: Ethereum (ETH) is generally considered halal as it is a utility token used to power a decentralized platform without inherent interest (riba). Staking ETH involves securing the network by validating transactions, which is seen as performing actual work rather than earning interest.

• ether.fi Staked ETH Protocol: ether.fi offers a decentralized, non-custodial staking solution where users stake ETH and receive EETH tokens representing their staked ETH. The protocol generates rewards through Ethereum’s native staking mechanism, which is permissible because it reflects real work securing the network.

• Shariah Compliance Considerations: The staking process is halal if it does not involve interest, lending, or supporting haram activities. ether.fi allows users to retain control of their keys and supports ethical infrastructure services, aligning with Islamic finance principles.

• Expert Opinions: Islamic finance experts and communities generally agree that ETH staking, including through protocols like ether.fi, can be halal when done with transparency, no interest involvement, and ethical governance.

Answer: Yes, ether.fi Staked ETH is halal because it involves earning rewards from actual work securing the Ethereum network without interest or unethical activities.