Ether.fi would like to propose the addition of weETH as collateral to ETH markets on Optimism and Base. Based on the demand and our integrations with structured products, we are confident that it will generate borrowing demand on the market.
Motivation
eETH is an LRT that allows users to stake their ETH, accrue staking rewards, and receive additional rewards through native restaking on EigenLayer. More than 2,029,385 ETH ($6.41B) in TVL has been deposited into the ether.fi protocol and has been natively restaked in EigenLayer.
ether.fi stands as the pioneering decentralized and non-custodial delegated staking protocol featuring an LRT (eETH). A notable feature of ether.fi is the control it provides stakers over their keys. The team behind the protocol is guided by the following principles:
- Decentralization is the foremost objective. ether.fi is unwavering in its commitment to maintaining the protocol’s non-custodial and decentralized nature, ensuring that stakers always have control over their ETH.
- ether.fi operates as a legitimate business with a sustainable revenue model, with the team dedicated to its long-term success. There is no place for deceptive or unsustainable financial practices.
- ether.fi is committed to always acting in the best interest of the Ethereum community. In the event of any missteps, the team at ether.fi will take responsibility and swiftly rectify the situation.
The weETH market on Compound can become a growth engine, tapping into the LRT sector (the quickest growing one in 2024).
Risks:
ether.fi’s LRT eETH is 100% redeemable for ETH since day 1. Users who deposit ETH into the protocol can withdraw their stake at any time. The protocol maintains a buffer of ETH in liquidity reserves to facilitate instant withdrawals on Ethereum Mainnet while also growing over 40,000 ETH in on chain liquidity pools across multiple chains to facilitate low slippage on large swaps.
Relevant Statistics and Links
ether.fi website
Twitter
CoinGecko 1
Contract addresses
- Base: 0x04C0599Ae5A44757c0af6F9eC3b93da8976c150A
- Optimism: 0x5A7fACB970D094B6C7FF1df0eA68D99E6e73CBFF
Audits
Whitepaper
Dune Dashboard Analytics Suite for ether.fi
Points support:
Users who deposit weETH into Compound will accumulate ether.fi and EigenLayer points to be used for future incentives. The full list of integrations can be found on the ether.fi DeFi page wherein protocols, assets, tvl, and boosts are plainly listed for users to choose from to define their own risk.
Next Steps:
The protocol invites the community to consider this application for listing weETH as collateral on both Optimism and Base, and welcomes suggestions in this direction.
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