Liquid restaking is an innovative concept in decentralised finance (DeFi) that maximises the utility and returns of staked assets. While traditional staking involves locking up cryptocurrencies to support network operations in exchange for rewards, liquid restaking takes this a step further by issuing tokenised representations of the staked assets. These tokens can be used simultaneously in other DeFi applications (such as lending, borrowing, or trading) while the original assets continue to earn staking rewards. This mechanism elevates capital efficiency and allows users to earn additional yields without sacrificing liquidity, effectively enabling them to “double-dip” within the DeFi ecosystem.
Ether.fi is a decentralised, non-custodial liquid staking protocol that allows users to stake ETH while retaining control of their private keys. Its main utility lies in enabling users to earn staking rewards without giving up custody, while also receiving a liquid staking token (eETH) that can be used across DeFi applications. Through its integration with EigenLayer, Ether.fi supports restaking, allowing users to secure additional protocols and earn compounded rewards, maximising capital efficiency and yield potential. This dual-use model is a key value proposition, offering both liquidity and better returns.
Governance is community-driven, with plans to progressively decentralise decision-making and give token holders a voice in protocol upgrades and key developments. The project has quickly built an engaged user base aligned with its ethos of self-sovereignty and trustless participation.
In terms of market performance, eETH is expected to be actively traded on major decentralised exchanges, supported by liquidity pools that ensure accessibility and trading efficiency. Although still emerging, Ether.fi’s unique model positions it well in the growing restaking sector.
While specific regulatory frameworks are still evolving, Ether.fi remains non-custodial by design, reducing centralisation risks and aligning more easily with decentralised compliance approaches as the legal landscape develops.