Wrapped eETH (WEETH)

Staking and Restaking

Wrapped eETH allows users to stake their ETH through the ether.fi platform, earning multiple types of rewards such as Ethereum staking rewards, ether.fi Loyalty Points, restaking rewards (including EigenLayer points), and rewards from providing liquidity to DeFi protocols. This process helps users maximize their staking income while keeping their assets liquid.

Decentralized Finance (DeFi) Applications

Wrapped eETH is an ERC-20 token pegged 1:1 to ETH, enabling users to use their staked ETH in various DeFi applications like decentralized exchanges, yield farming, and staking platforms. It solves the problem of ETH not being directly usable as an ERC-20 token, increasing its interoperability and utility within the Ethereum ecosystem.

Liquidity and Trading

By minting Wrapped eETH, users maintain liquidity of their staked ETH, allowing them to trade or use it in other DeFi activities without waiting for staking periods to end. Wrapped eETH can be easily swapped, lent, or borrowed in liquidity pools, providing flexibility and access to competitive interest rates.

Network Security and Validation

Holding Wrapped eETH contributes to Ethereum network security and consensus by supporting staking activities, while also allowing holders to participate in the DeFi space with full control over their assets.

Advantages

• Wrapped eETH is pegged 1:1 to ETH, ensuring stability and reliability.
• It enables ETH to be used like an ERC-20 token, increasing its versatility in decentralized applications (dApps) and DeFi platforms.
• Users can stake ETH and earn rewards while maintaining liquidity and control over their assets.
• It supports liquid restaking, allowing users to earn multiple rewards and participate in various DeFi activities without waiting for staking periods to end.
• Wrapped eETH integrates seamlessly with the Ethereum ecosystem, enhancing the utility of ETH.
• The token is supported by smart contracts that automate transactions and enforce protocol rules.
• Withdrawals are enabled, allowing redemption of eETH for ETH at a 1:1 ratio.
• It offers composability for use in DeFi, enabling participation in liquidity pools and yield farming.
• The decentralized, non-custodial staking model allows users to retain control of their private keys.

Disadvantages

• Trading volume can fluctuate significantly, indicating variable market activity.
• The value of Wrapped eETH can experience price decreases in short periods.
• As a wrapped token, it depends on smart contracts and the security of the Ethereum blockchain, which may have inherent technical risks.
• Users need to manage private keys carefully to maintain security.
• Wrapped eETH may underperform compared to the broader crypto market in some periods.

Founders

Wrapped eETH is developed by ether.fi, a project founded in 2022 by Mike Silagadze and Rok Kopp. They created ether.fi to build a non-custodial ETH staking protocol that allows users to retain control of their keys while delegating validator operations to node operators.

Development Team

Wrapped eETH was also developed by a team of blockchain enthusiasts, including members from the Ethereum community, supported by various DeFi platforms and liquidity providers.

Project Background

Ether.fi launched its mainnet in May 2023 and fully launched eETH in November 2023, enabling users to mint eETH for ETH at a 1:1 ratio. The project focuses on decentralized, non-custodial liquid staking for Ethereum.

Institutional Investors

Significant institutional investors include Tom Lee's Bitmine Immersion, which added $800 million worth of Ether to its holdings in October 2025, bringing total ETH holdings to over $13 billion. SharpLink also raised $76.5 million through a premium-priced stock offering to expand its Ether holdings, showing strong investor confidence.

Retail and DeFi Users

Wrapped eETH appeals to a wide range of individuals in the DeFi space, including ETH holders who want to use their assets for decentralized finance activities, traders seeking increased liquidity on decentralized exchanges, and DeFi protocols requiring ERC-20 compatibility.

Custodians and Smart Contracts

Wrapped eETH is created by custodians such as merchants, multi-signature wallets, or smart contracts that hold ETH as collateral and mint Wrapped eETH tokens in return. These entities facilitate the wrapping and unwrapping process, enabling investors to use ETH across different blockchain networks.

Halal Status of Wrapped eETH

Wrapped eETH is a liquid staking token on Ethereum that allows users to stake ETH and earn rewards while maintaining liquidity. It represents staked ETH and integrates with decentralized finance (DeFi) platforms.

Reasoning

• Wrapped eETH involves staking ETH and earning rewards from network validation and DeFi participation.
• It is a decentralized, non-custodial token pegged 1:1 to ETH.
• The rewards come from staking and DeFi activities, not from interest or prohibited sources.
• Discussions on Ethereum staking in Islamic finance communities suggest that staking rewards can be considered halal if they do not involve haram transactions or interest.

Answer: Yes, Wrapped eETH is halal because it represents staking rewards from Ethereum network participation without involving interest or prohibited activities.