Ether.fi is a decentralized, non-custodial liquid staking protocol that offers delegated staking with a unique feature: stakers retain control over their private keys. This element is vital as it empowers users with autonomy and security over their assets, distinguishing the protocol from custodial solutions where the service provider holds the keys.
Additionally, ether.fi introduces an innovative mechanism that facilitates the formation of a node services marketplace. The marketplace serves as a bridge between stakers and node operators.
Ether.fi caters to users of all staking sizes and difficulty preferences.
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eETH is a liquid staking derivative (LSD) that is similar to other protocols. This allows users to use ETH to mint eETH to earn staking yields. The ETH deposited will be delegated to node operators to generate staking rewards.
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Operation Solo Staker allows node operators to set up a validator node without the 32 ETH requirements. ETH will be provided by Ether.fi depositors, which will then be used to create validators. Validator keys will be provided to node operators to execute validator duties. Ether.fi also utilizes Obol Decentralized Validator Technology (DVT) to enhance operational redundancy.
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2 ETH BNFTs – Details not released yet.
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32 ETH stakers can utilize Ether.fi’s webapp to enhance security on their ETH staked by fully owning the private keys. Through Ether.fi, a user can generate private keys for communicating with Node Operators, generate a mnemonic and validator keys, encrypt their validator keys, and stake through etherfi’s protocol. This eases the process of large stakers that want enhanced security while delegating validating duties to node operators.
Since launching in Mar, 2023, they’ve managed to attract stakers through their loyalty points and ether.fan NFTs. They’ve managed to attract 17.5K ETH to stake within the protocol, but growth has stagnated since May, 2023.
For airdrop farmers, there is an opportunity to gain exposure to this project by staking ETH and earning loyalty points. They’ve announced that loyalty points play a role in decentralized governance, which hints at a retroactive airdrop for stakers.
Source: ether.fi
Additionally, ether.fi stakers will also be eligible for Eigenlayer points, tackling two potential airdrops simultaneously.
Disclosure: I have staked ETH in Ether.fi.