Add weETH Market on Ethereum

New Markets
1

Summary

ether.fi is seeking community support for adding weETH market to Compound V3 on Ethereum Mainnet.

Motivation

eETH is an LRT that allows users to stake their ETH, accrue staking rewards, and receive additional rewards through native restaking on EigenLayer. As of April 16, approximately 1,139,577 ETH ($3,54B) 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:

  1. 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.
  2. 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.
  3. 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. Users who deposit ETH into the protocol can withdraw their stake at any time. The holdings are publicly auditable on-chain and the protocol retains healthy reserves to offset any losses.

Proposed Collateral

ether.fi proposes adding the following assets as collaterals for the market

  • weETH
  • ETH

The community is invited to suggest and give inputs for any other collateral assets.

Relevant Statistics and Links

Website
Twitter
CoinGecko
Contract address: 0xCd5fE23C85820F7B72D0926FC9b05b43E359b7ee
Audits
Whitepaper
Dune Dashboard for ether.fi

Points support

Users who deposit weETH into Compound will accumulate ether.fi and EigenLayer points to be used for future incentives.

Next Steps

The protocol invites the community to consider this application for listing the weETH market and welcome suggestions in this direction.

Additionally, the protocol looks forward to the community to suggest

Collateral Factor

Reserve Factor

Borrowing Limit

2

I would urge people to vote against this proposal. Ether.fi used Omniscia to audit their codebase, which is known to be a terrible auditing service. They missed some key lines of code that led to the Wise lending hack in January of this year