ether.fi: An Overview
ether.fi is the leading non-custodial liquid restaking protocol on Ethereum — allowing users to stake ETH, receive a liquid staking token (eETH), and simultaneously participate in EigenLayer restaking to earn both staking rewards and additional restaking yield.
Quick answer
ether.fi is the leading non-custodial liquid restaking protocol on Ethereum — allowing users to stake ETH, receive a liquid staking token (eETH), and simultaneously participate in EigenLayer restaking to earn both staking rewards and additional restaking yield.
ether.fi is a non-custodial liquid restaking protocol founded in 2023 by Mike Silagadze, a Canadian entrepreneur previously known for co-founding Top Hat, an education technology company. ether.fi allows users to stake ETH and receive eETH — a liquid restaking token that earns both Ethereum staking rewards and, through integration with EigenLayer, additional restaking yield from the Actively Validated Services that EigenLayer secures. As of 2025, ether.fi had grown to become the largest liquid restaking protocol by TVL, managing over $5 billion in staked ETH.
The 'non-custodial' aspect of ether.fi's design is its most distinctive feature relative to liquid staking competitors. In ether.fi's architecture, stakers retain control of their validator keys at all times through a system of withdrawal credentials and distributed key management. This contrasts with protocols like Lido, where users deposit ETH and receive stETH but have no direct relationship with the validators processing their stake — the validators are operated by Lido's curated node operator set, not by the staker.
Non-Custodial Staking Architecture
ether.fi's non-custodial model works through a key pair system: when a user stakes ETH through ether.fi, the protocol generates a validator key pair where the withdrawal credentials point to the user's own address. The staker maintains ultimate ownership of the withdrawal rights while delegating the operational responsibilities of running the validator to a professional node operator. If ether.fi as a company were to disappear, stakers would still retain the ability to exit their validators and recover their ETH.
This design provides meaningfully stronger trust guarantees than custodial liquid staking, where users must trust the protocol operator not to misuse the validator key. For institutional stakers and users concerned about regulatory risks associated with custodial staking, ether.fi's non-custodial model offers important advantages.
eETH, weETH and Restaking Yield
Users who stake ETH through ether.fi receive eETH — a rebasing liquid staking token similar to Lido's stETH in that its balance increases daily to reflect accrued staking rewards. A wrapped version, weETH (wrapped eETH), maintains a fixed balance and accumulates yield through an increasing exchange rate — the same approach as Lido's wstETH — making it more compatible with DeFi protocols that expect non-rebasing token balances.
ether.fi automatically restakes deposited ETH through EigenLayer, meaning eETH holders earn restaking points and eventually AVS rewards on top of base Ethereum staking rewards. The combination of native staking yield, EigenLayer restaking rewards, and the ETHFI liquidity mining programme created a compelling multi-layered yield that drove ether.fi's rapid TVL growth.
The protocol also offers a 'Cash' product — a crypto debit card linked to ether.fi positions, allowing users to spend against their staked ETH holdings while continuing to earn staking yield. This represents one of the first practical integrations between liquid staking positions and consumer payment infrastructure.
ETHFI Token and Governance
The ETHFI governance token launched in March 2024 with one of the most anticipated token generation events of the year. A substantial portion of ETHFI was distributed to early users through a points-based airdrop, rewarding users who had deposited ETH ahead of the token launch. ETHFI quickly reached a fully diluted valuation of several billion dollars, reflecting the market's assessment of ether.fi's position as the leading liquid restaking protocol.
ETHFI holders govern the ether.fi protocol, voting on operator selection, fee structures, treasury allocations, and protocol upgrades. ether.fi has continued to expand its product suite, adding a lending market, yield optimisation vaults, and cross-chain deployments to position itself as a comprehensive liquid restaking and DeFi ecosystem rather than a single-product protocol.
Frequently Asked Questions
What is ether.fi?
ether.fi is the leading non-custodial liquid restaking protocol on Ethereum — allowing users to stake ETH, receive a liquid staking token (eETH), and simultaneously participate in EigenLayer restaking to earn both staking rewards and additional restaking yield.
How does ether.fi work?
ether.fi operates through smart contracts deployed on the Ethereum blockchain. Users interact directly with the protocol via a web interface or wallet integration — no account creation or KYC is required. All operations are settled on-chain and are publicly verifiable.
Is ether.fi safe to use?
ether.fi has undergone smart contract audits and is among the more established protocols in DeFi. However, all DeFi protocols carry inherent risks including smart contract vulnerabilities, oracle failures, and liquidation risk. Users should only commit funds they can afford to lose and review the protocol's audit reports before participating.
What blockchain is ether.fi built on?
ether.fi is primarily deployed on Ethereum. Many leading DeFi protocols are also expanding to Layer-2 networks such as Arbitrum, Optimism, and Base to reduce transaction costs and improve throughput.
What are the risks of using ether.fi?
Key risks include smart contract exploits, governance attacks, oracle manipulation, liquidity crises, and regulatory uncertainty. DeFi protocols are uninsured — losses from exploits are typically not recoverable. Always review audits and understand the mechanism before depositing funds.
How do I get started with ether.fi?
To use ether.fi, you need a self-custody wallet (such as MetaMask or Rabby), ETH for gas fees, and the relevant tokens for the action you want to perform. Visit the official protocol interface, connect your wallet, and follow the on-screen steps. Start with a small amount to familiarise yourself with the UX.
What token does ether.fi use?
ether.fi typically has a native governance token that allows holders to vote on protocol parameters, fee structures, and treasury allocations. Check the protocol's documentation for the current token ticker, total supply, and distribution schedule.
Who created ether.fi?
ether.fi was founded by a team of blockchain developers and DeFi researchers. The protocol is typically governed by a decentralised autonomous organisation (DAO), meaning ongoing development and parameter changes are decided collectively by token holders rather than a central company.
What is the total value locked (TVL) in ether.fi?
ether.fi's TVL fluctuates with market conditions and can be tracked in real time on DeFiLlama (defillama.com). TVL measures the total value of assets deposited into the protocol and is a key indicator of user confidence and liquidity depth.
How does ether.fi compare to other DeFi protocols?
ether.fi is differentiated by its specific mechanism, fee structure, and supported assets. Comparing protocols should include factors such as audited security posture, capital efficiency, governance maturity, cross-chain availability, and historical uptime. DeFiLlama and Dune Analytics provide side-by-side comparative data.