ether.fi Staked ETH (EETH)

Staking and Rewards

ether.fi Staked ETH is used to stake Ethereum (ETH) in a decentralized, non-custodial way. Users stake their ETH and receive eETH tokens that represent their staked ETH plus rewards. This lets users earn staking rewards while keeping control of their assets.

Liquidity and Flexibility

The eETH tokens are liquid, meaning users can trade, move, or use them in other DeFi applications without waiting for unstaking periods. This increases capital efficiency by unlocking the value of staked ETH.

Restaking and Yield Optimization

ether.fi Staked ETH can be restaked on platforms like EigenLayer to maximize rewards. This allows users to earn additional profits from multiple sources within the Ethereum ecosystem.

DeFi Integration

Holders of ether.fi Staked ETH can use their tokens in decentralized finance (DeFi) protocols for lending, borrowing, or other financial activities, enhancing the utility of their staked assets.

Pros

• Easy start with various entry levels, from as little as 0.001 ETH for eETH minting to the full 32 ETH validator experience, making it accessible to many users.
• Offers a competitive APR around 4.02%, with a large amount of ETH staked and total value locked, showing strong market trust.
• Allows users to keep control of their staking keys, which is appreciated by the community.
• Supports multi-token staking and unlocks DeFi opportunities on staked ETH.
• Implements community-focused rewards like loyalty points and decentralized governance participation.
• High security standards with audits and plans for bug bounty programs.
• You can redeem ETH from eETH/weETH tokens without the usual 14-day withdrawal delay if liquid ETH is available in the contract.

Cons

• Restaked assets are non-transferrable and cannot be used directly in DeFi while staked.
• There is a 14-day withdrawal period to redeem staked ETH back from the tokens, plus additional delays when converting back to ETH.
• Full 32 ETH staking requires a significant investment and technical knowledge for running a validator.
• Complexity varies depending on the staking method, which might be challenging for beginners.
• Some delays and waiting periods apply when withdrawing staked ETH.

For more details, visit the official ether.fi website.

Founders

ether.fi Staked ETH was founded by Mike Silagadze and Rok Kopp.

Mike Silagadze is often highlighted as the CEO and key figure leading the project.

Institutional Investors

Edge Capital is a known institutional investor that has been re-staking ETH with ether.fi since early 2024, trusting its non-custodial and transparent platform.

Individual Stakers

Anyone can stake ETH and receive ether.fi Staked ETH tokens, participating directly in the protocol and liquidity pools.

Community and DAO Members

The Ether.fi DAO governs the protocol, with community members involved in decisions like incentive programs and token utility enhancements.

Notable Large Depositors

Justin Sun, founder of Tron, made a significant deposit of 120,000 ETH (~$480 million) into the ether.fi protocol, marking one of the largest transfers.

These groups together support the growth and liquidity of ether.fi Staked ETH.

Halal Status of ether.fi Staked ETH

• Yes, ether.fi Staked ETH is generally considered halal by many Islamic finance scholars because it involves staking Ethereum, which is widely accepted as halal.
• The staking process is seen as earning rewards through participation in network security rather than interest (riba).
• However, some scholars note that the final ruling can depend on how the staking rewards are generated and used, but the consensus leans toward permissibility.