ether.fi Staked ETH Liquid Staking

eETH is the native liquid restaking token issued by ether.fi, a decentralized, non-custodial Ethereum staking protocol. When users deposit ETH into ether.fi, they receive eETH, which represents their staked ETH position and accrues staking and restaking rewards.

Key characteristics:

• Rebasing Token: eETH maintains a 1:1 peg to ETH by automatically adjusting token balances. Staking rewards are reflected as additional eETH in your wallet, typically rebasing once per day.
• Native Restaking: ETH deposited into ether.fi is automatically restaked through EigenLayer, providing exposure to both Ethereum staking yield and AVS (Actively Validated Services) restaking rewards.
• Non-custodial: ether.fi uniquely allows stakers to retain control over their validator keys, offering superior self-custody guarantees.
• Liquidity: eETH can be used across DeFi protocols or converted to weETH (the wrapped, non-rebasing version) for broader DeFi compatibility.

Note: For institutional use cases, the wrapped version weETH is generally preferred due to simpler accounting and broader DeFi integration. See the weETH FAQ for details.

eETH holders earn yield from three compounding sources:

• Ethereum Consensus Layer Rewards: Block proposals, attestations, and sync committee duties performed by validators running the staked ETH.
• Execution Layer Rewards: Transaction priority fees (tips) and MEV (Maximal Extractable Value) captured during block production.
• EigenLayer Restaking Rewards: Additional yield from securing Actively Validated Services (AVSs) through EigenLayer's restaking infrastructure. These rewards are distributed to eETH holders on top of the base staking yield.

ether.fi is a decentralized Ethereum staking and restaking protocol ranked among the largest liquid staking and restaking protocols by total value locked. Key differentiators include:

• Validator Key Custody: ether.fi is the only major liquid staking protocol that allows stakers to retain control of their validator keys, reducing counterparty risk.
• Native Restaking: Protocol-level EigenLayer integration means all deposited ETH is automatically restaked, eliminating manual restaking operations.
• Distributed Validator Technology (DVT): Validators are operated across distributed infrastructure, reducing single points of failure.
• Dual Token Model: eETH (rebasing) and weETH (non-rebasing/wrapped) cater to different use cases -- DeFi protocols typically prefer weETH for integration simplicity.

eETH risk profile includes the following dimensions:

• Smart Contract Risk: eETH relies on ether.fi's staking contracts, EigenLayer's restaking contracts, and Ethereum's deposit contract. Each layer introduces vulnerability surface. All contracts are open-source and independently audited, but residual risk persists.
• Dual Slashing Exposure: eETH holders bear both Ethereum consensus slashing risk (validator misbehavior) and EigenLayer slashing risk (AVS obligation violations). ether.fi mitigates this through diversified node operator selection and risk monitoring.
• Rebasing Complexity: The daily balance adjustment of eETH can create accounting and tax reporting challenges. For institutional operations, wrapping to weETH eliminates this complexity.
• Price Depegging Risk: eETH may temporarily trade below its 1:1 ETH peg on secondary markets during periods of high sell pressure or low liquidity.
• Protocol Risk: Dependence on ether.fi protocol governance, node operator selection, and smart contract upgrade processes. Evaluate the ETHFI governance token distribution for concentration risk.

For validator and infrastructure risk certification, refer to the Staking Rewards Verified Staking Provider (VSP) Program.

Key operational parameters for eETH positions:

• Minting: Deposit ETH into ether.fi to receive eETH at a 1:1 ratio. No minimum deposit.
• Wrapping: Convert eETH to weETH at any time for non-rebasing exposure. The conversion is instant and permissionless.
• Unstaking: eETH can be unstaked through ether.fi, subject to the Ethereum validator exit queue. ether.fi's native restaking integration eliminates the separate 14-day EigenLayer withdrawal delay that other restaking solutions require.
• Secondary Market Liquidity: eETH and weETH are liquid on major DEXs and CEXs. For large positions, assess available on-chain liquidity to minimize slippage.
• Reward Frequency: Rebasing occurs daily. Staking and restaking rewards are accrued continuously and distributed through the rebase mechanism.
• Custody: eETH is an ERC-20 token compatible with standard Ethereum custody solutions.

eETH provides several institutional use cases:

• Base Yield Layer: ETH staking + restaking yield provides a foundational yield on ETH-denominated holdings.
• Collateral Optimization: eETH (or weETH) can be used as collateral in lending protocols, enabling leveraged yield strategies or capital-efficient borrowing.
• Liquidity Management: Unlike native ETH staking with its withdrawal queue, eETH positions can be exited via secondary markets at any time, supporting dynamic treasury management.
• Risk Layering: The distinction between base staking yield and restaking yield enables granular risk/return attribution for portfolio reporting.

For yield modeling and comparison, visit the Staking Rewards Calculator.

The choice depends on your operational requirements:

• Use weETH if: You need simpler accounting (no daily balance changes), broader DeFi protocol compatibility, or plan to use the token as collateral. Most lending protocols, yield aggregators, and institutional DeFi platforms integrate weETH rather than eETH.
• Use eETH if: You prefer the intuitive 1:1 ETH peg for position tracking, or if your custody/reporting infrastructure handles rebasing tokens natively.

Both tokens represent the same underlying staked/restaked ETH and earn identical yields. Converting between them is instant and permissionless via the ether.fi protocol. There is no economic difference -- only a structural one in how rewards are represented.