ETHFI is a decentralized staking protocol aimed at improving the Ethereum (ETH) user experience. With ETHFI, staking becomes effortless as it eliminates the need to manage validators or adhere to minimum deposit requirements. It allows users to stake their Ethereum (ETH) while retaining control over their private keys. This contrasts with traditional staking methods where users surrender control of their assets to validators.
What sets ETHFI apart is its focus on liquid staking introducing eETH that can be used in DeFi applications, enabling you to earn additional yields on your staked ETH while still contributing to Ethereum's network security.
In this article, you will learn about ETHFI, its overview, features, roadmap, utility, liquid staking who is a solo staker, and how to buy and trade ETHFI.
Overview of ETHFI
ETHFI introduces Liquid, an automated DeFi strategy vault that allows users to earn yields on their eETH or weETH, providing simple diversification and access to new boosts, promotions, and ETHFI rewards. When you stake ETH on ETHFI, you are awarded an equivalent amount of eETH, the liquid staking token.
The eETH is then automatically compounded through EigenLayer, a decentralized infrastructure layer. This feature ensures that your staking rewards are automatically reinvested, leading to higher returns over time.
The key feature of ETHFI is its re-staking mechanism, which provides superior rewards. Users can stake any amount of ETH and receive eETH, a natively restaked token that earns staking rewards. By maximizing rewards through DeFi applications, users can enhance their earnings while maintaining composability for DeFi applications.
Features of ETHFI
Seamless Staking, Effortless Earnings: Stake ETH, get eETH, a liquid staking token that fuels DeFi and decentralizes Ethereum.
Liquid Staking Token: eETH allows users to earn yields on their staked assets and provides access to DeFi opportunities.
Governance with ETHFI: ETHFI token holders shape the future of the protocol, contributing to its development and ecosystem thriving.
Superior Rewards with Re-staking: ETHFI allows users to re-stake their rewards, maximizing their earnings and maintaining composability for DeFi applications.
Roadmap
ETHFI's journey began with a focus on decentralized staking, offering users the ability to stake their Ethereum (ETH) while retaining control of their keys. This approach emphasizes decentralization and self-custody, distinguishing ETHFI from traditional staking protocols.
Delegated Staking with Self-Custody of Keys: ETHFI's decentralized application allows users to stake their ETH in 32 validator increments, ensuring secure and proven node operators.
Solo Node Operators Integration Phase 1: In partnership with Obol Labs, ETHFI spun up the first DVT mainnet validator, paving the way for a geographically dispersed group of independent operators.
DVT Integration Phase 1: This proof of concept, partially automated in Phase 1, aims for full automation in Phase 2.
Open Source Smart Contracts: ETHFI further commits to the Ethereum ecosystem by open-sourcing its suite of smart contracts, enhancing trust and reliability.
eETH Launch with Permissionless Minting and Redemptions: ETHFI's Liquid Staking Token, eETH, allows users to participate in Ethereum staking in a fully permissionless manner, promoting liquidity and accessibility.
DVT Integration Phase 2, Permissionless Solo Staking: Building on Phase 1's success, Phase 2 aims to enable users to act as solo stakes free from centralized management.
What is the Utility of ETHFI?
ETHFI is the native governance token of the Ether Fi protocol, offering several key utilities:
- Protocol Governance: ETHFI holders can engage in voting on critical decisions that shape the future of the Ether Fi protocol.
- Treasury Management: A share of the ETHFI token supply is designated for the Ether Fi treasury, financing the continual development and upkeep of the protocol.
- Fee Distribution: Holders of ETHFI tokens are entitled to a portion of the fees generated by the Ether Fi protocol.
What is Liquid Staking and Who is Solo Staker?
Liquid staking refers to the process of staking Ethereum (ETH) to earn staking rewards while receiving a liquid representation of the staked ETH, known as eETH. This eETH token can be freely traded or used in DeFi applications, allowing stakers to access liquidity without having to wait for their staked ETH to be unlocked.
A solo staker in the ETHFI ecosystem is an individual who stakes their ETH independently, without relying on a centralized service or validator. Solo stakers retain full control over their staked ETH and manage their validator node, including key management and rewards distribution.
How to Buy and Trade ETHFI Tokens?
CoinEx, a leading global cryptocurrency exchange with over 10 million users worldwide and a 100% reserve, added support for ETHFI, offering users a new opportunity to engage with this innovative token. With CoinEx's wide range of supported tokens, users can now seamlessly trade and invest in this promising asset.
To trade ETHFI tokens on CoinEx, follow the steps below.
- Create an Account: Start by signing up for a CoinEx account.
- Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
- Navigate to ETHFI Trading Page: Once your account is funded, navigate to the dedicated ETHFI trading page on CoinEx. You can locate ETHFI trading pairs on the spot trading page using a search box and enter the term "ETHFI" to find the associated pairs.
- Choose a Trading Pair: Select the trading pair ETHFI/USDT to trade ETHFI against USDT (Tether).
- Specify the Purchase Amount: The next step is to specify the number of ETHFI you wish to buy. You have the option to either buy them at the current market price or set a limit for your desired buying price on the trading page.
- Execute the Trade: With the specified amount, proceed to execute the trade. Confirm the details, and if you are satisfied, submit the order.
By following these comprehensive steps, you can easily trade ETHFI tokens on CoinEx, taking advantage of the available trading pairs.
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