What is ETHFI?
Introduction to ETHFI
ETHFI, the native utility and governance token of Ether.Fi, is part of a non-custodial, decentralized staking protocol on the Ethereum blockchain. Its primary function is to offer secure and seamless delegated staking services, attracting user participation through innovative revenue streams. Notably, Ether.Fi has implemented Operation Solo Staker, deploying nodes across different global regions to further decentralize and effectively reduce counterparty risks between node operators and the protocol.
Moreover, as a governance token, ETHFI not only supports the protocol’s native functions but also focuses on empowering the community and shaping the collaborative future of decentralized finance (DeFi). It has a fixed supply and is strengthened in decentralization and user empowerment through strategic airdrops. On the ether.fi protocol, users can also mint eETH—Ethereum’s first native liquid restaking token—allowing participants to gain various rewards through restaking ETH, including Ethereum staking rewards, loyalty points, restaking rewards, and the ability to provide liquidity to DeFi protocols.
ETHFI Development Roadmap
ETHFI was designed to meet the needs for decentralization and self-custody. The team's initial goal was to securely stake their Ethereum while retaining control over their keys. To this end, they developed a self-service delegated staking method that allows users to keep their keys.
In June 2023, the Ethereum decentralized application (dApp) enabled the secure staking of personal ETH, requiring each validator to deposit 32 ETH, provided by a group of verified node operators. Subsequently, the project collaborated with Obol Labs and in August 2023 successfully launched the first cohort of mainnet validators managed by a geographically dispersed group of small, independent operators.
Additionally, they completed the first phase of DVT integration in August 2023, where the proof of concept was partially automated with plans for full automation in the next phase. In October, in response to their commitment to the Ethereum ecosystem, they open-sourced their smart contract code to enhance the protocol's trustworthiness, quality, reliability, and security.
In November 2023, ether.fi launched its liquid staking token eETH, allowing users to participate in Ethereum staking in a completely permissionless manner, instantly buying and selling staked assets. They also plan to continue publicizing their software services and code in February 2024 to encourage other participants in the ecosystem to do the same.
Upcoming milestones include completing the second phase of DVT integration in April 2024, allowing users to conduct solo staking independently and without permissions. In the same month, ether.fi will implement DAO governance and token generation, ensuring the protocol's autonomy and long-term operation. Finally, the team plans to gradually ossify smart contracts, removing upgradability features to ensure software stability and security. The timeline for this step has not yet been determined.
ETHFI Staking Protocol Guide
The ETHFI staking protocol is designed to provide a secure method for substantial stakers (32 ETH or more) to connect to our web application, generate private keys for communication with our node operators, create mnemonics and validator keys, and stake by encrypting these keys.
Detailed Staking Process
Initially, users need to deposit 32 ETH to meet the staking requirements for each validator. Through our web application, users can connect their wallets and opt to participate in the Early Adopter Program or a Limited Release. Following this, users will be required to deposit ETH in amounts necessary for each validator (32 ETH each).
When selecting node operators, users have two options: choose a specific node operator or select the "Highest Bid" in the validator auction. After choosing, users need to confirm the price or bid of the operator.
Best Practices for Secure Operation
During the operation, we strongly recommend using an isolated device and USB drive to ensure security. Additionally, using a hardware wallet (such as Ledger or Trezor) to protect your mnemonic and private keys is advised. If these keys are compromised, your ETH could be stolen.
Using the Desktop Application
Users need to generate withdrawal and validator keys using our desktop application, which can operate offline to prevent any online threats. After generating the keys, users must encrypt them and complete the staking request by uploading the encrypted validator keys (StakeRequest file).
During this process, our application also features an integrated database and seamless encryption functions to protect sensitive keys and data. When first using the desktop application, users are required to set up a password that will be used to secure the mnemonic and validation data.
Generating Mnemonics and Keys
Users have the option to generate a new mnemonic, import an existing one, or use a previously saved mnemonic. We recommend generating a new mnemonic for ether.fi to avoid the risks of running duplicate instances with the same validator keys. Once generated, it's crucial to securely store and encrypt the mnemonic offline.
Completing Staking and Validation
After generating and encrypting the keys, the desktop app automatically sends the staking request to the ether.fi application. Users must confirm this action, which triggers the upload of the encrypted keys to IPFS, sends the deposited ETH to the official Ethereum Staking Deposit Contract, and notifies the node operator to start running the validator.
At any time, users can cancel their stake and retrieve their ETH. Furthermore, upon successful registration, users will be greeted with a "Congratulations" screen and can access their validator's "dashboard."
How Ether.Fi Ensures the Security of Staked Assets
Ether.Fi utilizes several advanced technologies and strategies to ensure the security of staked assets, including:
Decentralized and Non-Custodial Staking Protocol
Ether.Fi is a fully decentralized, non-custodial staking protocol where users maintain complete control over their keys, eliminating the need to hand over funds or key control to any central authority. This design significantly reduces the risk of single points of failure caused by centralized management, enhancing the security of the funds.
EigenLayer Restaking Technology
Through collaboration with EigenLayer, Ether.Fi implements restaking technology, using users' ETH staked funds to support external systems such as rollups and oracles, thus building an economic security layer. This not only enhances the liquidity and profitability of the assets but also strengthens the overall security of the system.
Integration with SSV Network
Ether.Fi's collaboration with the SSV Network incorporates Distributed Validator Technology (DVT) and restaking technology. This technological cooperation makes validator operations more dispersed and secure, effectively enhancing the protection level of staked assets and the stability of the entire ecosystem.
Investment Protection Network
Ether.Fi also builds a substantial investment protection network to enhance network security. This shows that the platform enhances overall network security through both technical and financial means, providing an additional layer of protection for users' staked assets.
Transparent Technical Documentation and Safety Measures
Ether.Fi's technical documentation thoroughly details its security measures and potential risks, highlighting the platform's commitment to transparency in security. This transparency not only helps increase user trust but also enables users to better understand and assess the risks involved in participating in staking activities.
Official Links for ETHFI
Website: https://www.ether.fi/
Twitter： https://twitter.com/ether_fi
Discord： https://discord.com/invite/zqGzcuQWvD
Telegram： https://t.me/+C3fpSjmPqzA5NTVh
Steps to Buy ETHFI on LBank
Purchasing ETHFI tokens on the cryptocurrency exchange platform LBank is straightforward. Here's a step-by-step guide:
1. Log into your account: Ensure you're registered and logged into your LBank account, then click the "Trade" option in the top menu bar to start the trading process.
2. Search for ETHFI: Use the search function within the trading platform to find "ETHFI", locate the trading pair, such as ETHFI/USDT, and click to enter its dedicated page.
3. Place an order: In the ETHFI/USDT trading page's spot trading area, enter the amount of ETHFI you wish to buy. If you want to complete the purchase immediately at the current market price, select a market order and then click the "Buy" button.
4. Confirm the order: A confirmation window will pop up. After verifying the order details are correct, confirm to place your order. Once the transaction is successful, the purchased ETHFI will automatically be deposited into your LBank spot wallet.