KEYTAKEAWAYS
- Ether.fi (ETHFI) allows stakers to retain full control over validator keys, reducing counterparty risk and enhancing decentralization.
- Through integration with EigenLayer, eETH is automatically restaked, providing users with additional passive rewards.
- Backed by strong investors and unique NFT-based validator architecture, Ether.fi is building a composable, secure staking infrastructure.
CONTENT
Ether.fi (ETHFI) is a non-custodial Ethereum liquid staking protocol offering validator control, restaking via EigenLayer, and a growing node service marketplace.
WHAT IS ETHER.FI (ETHFI)?
Ether.fi (ETHFI) is a decentralized liquid staking protocol built on the Ethereum blockchain. It allows users to stake ETH while retaining full control over their validator credentials—an approach that sets it apart from platforms like Lido or Rocket Pool.
When users stake through Ether.fi (ETHFI), they receive eETH, a liquid staking token that can be redeemed for ETH or used in the broader DeFi ecosystem. What makes Ether.fi (ETHFI) unique is its non-custodial design: stakers hold their own withdrawal credentials, including private keys, which gives them full autonomy over validator exits.
In addition, eETH tokens are automatically restaked through integration with EigenLayer, generating additional rewards on top of base staking yields—no extra steps required from users.
The protocol is also building a node services marketplace, where node operators and delegators can register validators to offer infrastructure services. This expands decentralization and opens up new earning opportunities within the ecosystem.
— ether.fi (@ether_fi) April 24, 2025
💰 Funding & Backers
In February 2023, Ether.fi (ETHFI) raised $5.3 million in a funding round led by:
- North Island Ventures
- Chapter One
- Node Capital
Notably, BitMEX co-founder Arthur Hayes also participated, signaling strong confidence in Ether.fi’s long-term vision and decentralized architecture.
>>> More to read: What Is Ethereum & How Does It Work?
HOW DOES ETHER.FI (ETHFI) WORK?
Unlike most delegated staking protocols, where users deposit ETH and are matched with a node operator who generates and controls the validator credentials, Ether.fi (ETHFI) takes a fundamentally different approach.
In traditional setups, even if a protocol claims to be non-custodial, control over the validator often rests with the node operator. This creates an opaque and potentially custodial arrangement, exposing stakers to significant counterparty risk.
🔐 User-Controlled Staking
Ether.fi (ETHFI) allows stakers to retain full control over their validator keys while delegating the staking operations to a node operator. This design ensures that users maintain custody of their ETH and drastically reduces staking risk.
🧩 Validator NFTs and eETH
For each validator initialized through the protocol, Ether.fi (ETHFI) creates a unique NFT that:
✅ Represents control over the staked 32 ETH
✅ Stores validator metadata such as:
- Node operator identity
- Geographic location
- Client software
- Any active node services
The protocol’s liquid staking token, eETH, is minted from a liquidity pool composed of these validator NFTs. This architecture makes staking programmable and composable, opening the door for further utility.
🔁 Programmable Staking Infrastructure
These validator NFTs form the basis of a programmable infrastructure layer, enabling the development of more complex staking-related services. The integration with EigenLayer further enhances this system, allowing for restaking and service delegation without compromising user control.
🌐 A Secure and Flexible Ecosystem
Through this model, Ether.fi (ETHFI) not only preserves user ownership and security, but also supports the evolution of a node services marketplace—creating new economic opportunities and expanding Ethereum’s decentralization.
>>> More to read: Ethereum Classic (ETC): The Original Ethereum Blockchain
ETHFI TOKENOMICS
The total supply of ETHFI, the native governance token of Ether.fi (ETHFI), is capped at 1 billion tokens. As part of its initial distribution strategy, 2% of the total supply (20 million ETHFI tokens) were allocated to users participating in the Binance Launchpool.
🎯 Binance Launchpool Distribution
Binance Launchpool is a platform where users can stake existing crypto assets to earn newly launched tokens. It offers early access to promising Web3 projects like Ether.fi (ETHFI) and rewards users for their participation.
For the ETHFI Launchpool:
- 80% of the rewards were allocated to BNB stakers
- 20% went to the FDUSD staking pool
However, higher allocation to the BNB pool doesn’t necessarily mean BNB stakers earn more ETHFI. The actual rewards depend on your individual stake size relative to the total pool size you join.
📊 Initial Circulating Supply
At launch, Ether.fi (ETHFI) had an initial circulating supply of 115.2 million tokens, which accounts for 11.5% of the total supply. The rest of the tokens are expected to be gradually released over time via mechanisms like community incentives, ecosystem development, team allocations, and governance reserves.
>>> More to read: What is Binance Launchpool? Earn Free Token
ETHER.FI (ETHFI) CONCLUSION
Among the growing number of staking protocols, Ether.fi (ETHFI) stands out with a fundamentally different approach. At its core, the platform empowers stakers by giving them control over their withdrawal credentials, removing reliance on the protocol itself and significantly mitigating counterparty risks.
Its design also introduces a node services marketplace, enabling seamless connections between validators and stake contributors, further decentralizing the infrastructure layer of Ethereum staking.
Looking ahead, one of the key challenges for Ether.fi (ETHFI) lies in driving broader DeFi integration for eETH. As more DeFi protocols adopt eETH and unlock stacked yield opportunities through restaking, Ether.fi (ETHFI) is well-positioned to attract a wider user base.
Backed by strong early TVL growth and support from notable institutional investors, the protocol has laid a promising foundation for future expansion. Its unique blend of security, decentralization, and composability makes it one of the most closely watched staking projects in the Ethereum ecosystem.
