Understand Binance’s latest Launchpool project ether.fi: the leading player on the re-staking track that has attracted much attention

Bankless

2024-01-16 10:43

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Original title: "Getting Started with ether.fi Staking"

Original author: William M. Peaster, Bankless

Original compilation: Luccy, BlockBeats

Editor's note:

On March 12, according to the official announcement, Binance Launchpool launched ether.fi (ETHFI), and users can use it BNB and FDUSD conduct ETHFI token mining, and mining will start at 00:00 (UTC) on March 14, 2024. Binance will list ETHFI at 12:00 (UTC) on March 18, 2024, and open ETHFI/BTC, ETHFI/USDT, ETHFI/BNB, ETHFI/FDUSD, and ETHFI/TRY trading pairs. According to Binance’s announcement, the total number of ether.fi (ETHFI) tokens is 1 billion, with an initial circulating supply of 11.52%. This Launchpool accounts for 2% of the total supply.

Recently, LST and LRT Narratives are all the rage in Ethereum. William M. Peaster, senior writer at Bankless and founder of Metaversal, wrote an article explaining the reasons why re-hypothecation has become a mainstream trend in the cryptocurrency field, and provided an in-depth understanding of the opportunities and challenges through case analysis. William M. Peaster mainly mentioned a new re-pledge project, ether.fi. The article elaborated on ether.fi’s double points strategy. Points have the opportunity to be exchanged for air investment qualifications. BlockBeats compiled the original text as follows:

Liquid Staked Tokens (LST) have been all the rage around Ethereum lately.

You’ve heard of the big players here, like Lido (stETH), Rocket Pool (rETH), and Coinbase (cbETH) – these LSTs allow users to stay liquid functionality and receive ETH staking rewards without running your own validator setup.

General commitment? Deposit ETH to receive LST on behalf of your deposit, then hold or spend the LST as you wish, while it gradually accrues equity in ETH over time.

Many platforms have risen by following this model, but currently in the LST space, re-staking is a technology that is causing great excitement and is widely promoted by EigenLayer a method. Re-staking leverages LST deposits to provide an extension of validator services to projects looking to access external security infrastructure.

This is a win-win situation Model: Depositors can receive both equity in ETH and verification revenue from projects utilizing EigenLayer, and these projects are able to adopt Ethereum's decentralization and security without having to build their own trust networks.

What is the problem? At this early stage, EigenLayer set a cap on LST deposits, and to date, whenever the cap has been raised, the limit has been quickly reached. This situation is not surprising as there is currently huge anticipation for future EigenLayer airdrops.

The good news? There is a solution. EigenLayer also offers native restaking, the ability to deploy actual validators via EigenLayer, and interestingly, there is no deposit cap.

What about better news? There are some projects that make this easier, effectively turning the local re-hypothecation process into a single deposit process. One item to note here is ether.fi.

Introduced in 2023 ether.fi created eETH, an LST that natively re-pledges its underlying ETH deposits through EigenLayer. In addition to staking rewards and the possibility to use eETH in DeFi, this recurring flow also enables depositors to earn both ether.fi loyalty points and EigenLayer re-staking points, both of which may be involved in shortlisting eligibility.

Funny, right?

Then please note that using This opportunity is very simple. You can mint eETH at a 1:1 ratio simply by depositing ETH (minimum = 0.001 ETH), at which point your eETH balance will start accruing points. The process is as follows:

· Go to app.ether.fi

· Connect your wallet

· Enter your desired deposit amount in the UI

· Click " Stake"

·Sign staking transactions with your wallet

Voila, that's all you need to use the ether.fi Double Points Strategy step. Remember, you can unstake and withdraw your ETH through the same interface, just click the arrow button in the center of the interface to enter "Withdraw" mode to get started.

As for your points, you can earn them via app.ether.fi/portfolio page. The formula for calculating ether.fi points is the amount of ETH staked x 1,000 x the number of days to stake, for example, staking 1 ETH for a week will earn you 7,000 points.

No matter what happens next in the cryptocurrency space, restaking is here to stay, so don’t get obsessed with “double whammy” restaking projects like ether.fi, In these programs, you can maximize your returns with a single deposit.