We are thrilled to share that ETHFI is now listed on Coinhako!
What are Ether.Fi and ETHFI?
Ether.fi introduces native restaking, automatically compounding rewards to enhance returns without manual intervention, striving to enhance accessibility, efficiency, and decentralization in Ethereum staking.
ETHFI is a decentralized staking protocol on Ethereum, offering users control over their keys while engaging in staking activities. Its main products include Staking, Liquid, and Cash, allowing users to hold, deploy, and spend their crypto.
There is a total supply of 1,000,000,000 ETHFI and ETHFI has traded for US $8.53 at its peak.
How does Ether.fi work?
Ether.fi receives ETH deposits from stakers, which are subsequently staked to establish Ethereum validators. A Non-Fungible Token (NFT) is then issued for each validator created, contributing to the creation of the Liquid Staking Derivative (LSD) token, eETH, from a liquidity pool.
Every 32 ETH deposited produces one validator key. These NFTs control the 32 ETH stake and hold crucial metadata about the validator. Stakers rely on these validator keys to execute tasks like proposing blocks and ensuring the chain's integrity. In a nutshell, ETHFI takes ETH from ETHFI stakers and gives it to home node operators.
However, the decentralization of the system could be undermined if all validator keys are controlled by a small group of node operators — with Distributed Validator Technology (DVT), a single validator key can be divided and distributed among multiple home stakers.
Ether.fi offers two paths for solo stakers to embark on, empowering anyone to run nodes and further decentralize the Ethereum network.
The first path is permissionless with DVT, and requires a 2 ETH bond and staking hardware. Ether.fi provides 30 ETH, software, and technical support, while users supply hardware, internet connection, and the bond.
The second path, coined as "Operation Solo Staker," allows select users to solo stake using DVT without the 2 ETH bond requirement by committing to operate a node for two years within a permissioned environment facilitated by Ether.fi.
Why does Ether.fi stand out?
ETHFI holders have the authority to propose and vote on significant changes within the Ether.fi protocol, including upgrades and fee adjustments. Additionally, they can initiate and vote on collaborations and events while driving innovation in the broader Ether.fi ecosystem. Their votes shape the integration of features, determine support for DeFi projects, and impact the overall influence of the protocol.
While traditional staking methods often require users to lock up their assets for extended periods, Ether.fi provides flexibility by issuing LSDs in exchange for staked ETH. LSDs give users access to the liquidity of their staked tokens which otherwise would be locked in a staking smart contract. This liquidity allows users to trade or use their assets in DeFi applications while continuing to earn staking rewards.
The staking rewards are then automatically compounded, eliminating the need for manual intervention and maximizing users' returns.
What can you do with ETHFI on Coinhako?
ETHFI will be available for users to trade across all swap pairs on Coinhako.
To gain access to any of these trading pairs, you can either:
- Fund your SGD wallet on Coinhako instantly with PayNow (or any other supported payment method)
- Purchase ETHFI instantly with Visa / Mastercard
Please note that the sending and receiving of ETHFI will not be available for this release.
Risk Warning on Digital Payment Token Services
Hako Technology Pte Ltd ("Coinhako") is licensed to provide digital payment token services under the Payment Services Act 2019 (No. 2 of 2019).
The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of a digital payment token ("DPT") service provider.
Before you pay your DPT service provider any money or DPT, you should be aware of the following.
- Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
- You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.
- You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
- You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
Visit: Coinhako.com/risk-disclosure for more information.