Ether.fi

Ether.fi is a decentralized, non-custodial liquid restaking protocol; users stake ETH for eETH (wrapped as weETH) which restakes via EigenLayer to earn staking plus restaking rewards.

Largest liquid restaking protocol; users keep control of their validator keys, plus a Cash/DeFi product suite on top of weETH.

- eETH (liquid staking/restaking token): The core rebasing liquid restaking token. Users deposit ETH and receive eETH, which accrues Ethereum staking rewards plus EigenLayer restaking rewards; balances rebase automatically as rewards accumulate. - weETH (wrapped eETH): A non-rebasing, wrapped version of eETH built for DeFi composability. It maintains the same underlying yield exposure while keeping a constant balance, making it usable as collateral and in liquidity pools across DeFi. - EigenLayer restaking integration: Staked ETH is natively restaked through EigenLayer, allowing Ether.fi validators/positions to secure additional services (AVSs) and earn restaking rewards on top of base staking yield. - Liquid Vaults: Automated, curated DeFi strategy vaults (e.g. Liquid ETH Yield, Liquid USD, Liquid BTC Yield) that deploy deposits across yield opportunities and issue a liquid receipt token. - Ether.fi Cash: A DeFi-native Visa payment card that lets users spend against their Ether.fi crypto balance, with cashback rewards and Visa network benefits. - ETHFI governance token: The protocol's governance token (max supply 1,000,000,000, no further issuance). Holders vote on grants, protocol upgrades, node-operator permissions, treasury diversification, and economic parameters such as protocol fees.

- Smart Contract: eETH/weETH, restaking adapters and Liquid Vault contracts hold user ETH; a bug or exploit in the deposit, withdrawal, or vault-strategy contracts could cause loss of funds. Continuous new releases (V2/V3, Pectra, EigenLayer slashing adapters) each expand the audited surface area. - Network: Underlying value depends on Ethereum proof-of-stake validators; validator downtime, penalties, or slashing on the beacon chain directly reduce the ETH backing eETH/weETH. - Governance: An early CertiK finding flagged that a single account controlled most smart-contract functions (centralization concern). Governance/admin keys and upgradeable contracts mean control decisions materially affect user funds; concentration of ETHFI voting power is an ongoing consideration. - Counterparty: Restaking through EigenLayer introduces dependence on EigenLayer contracts and the AVSs that Ether.fi opts into; misbehavior or slashing conditions at that layer can propagate losses to restakers. - Reserve / Depeg: weETH is a wrapper whose secondary-market price can deviate from its intrinsic redemption value during periods of thin liquidity, stress, or delayed withdrawals, exposing DeFi users and lending-market collateral positions to depeg/liquidation risk.

- Yield-bearing/interest-bearing deposit account: similar — Like a savings or money-market account, users deposit an asset (ETH) and earn ongoing yield while retaining a claim on the principal.; differs — Ether.fi is non-custodial and on-chain: the receipt token (eETH/weETH) is freely transferable and usable across DeFi, yield derives from validator and restaking rewards rather than a bank's balance sheet, and there is no deposit insurance; returns and principal are subject to smart-contract, slashing and market risk. - Cashback rewards credit/debit card: similar — Ether.fi Cash resembles a traditional Visa rewards card, offering cashback on everyday spending via the Visa network.; differs — Spending is settled against the user's on-chain crypto balance rather than a fiat bank account or a traditional credit line, and cashback can be paid in crypto/ETHFI.