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EtherFi\u2019s eETH token will offer exposure to both Ethereum staking and restaking<\/p>\n
eETH, the highly-anticipated liquid staking token from EtherFi, is now live on Ethereum\u2019s Goerli testnet ahead of its Nov. 6 mainnet launch.<\/p>\n
Liquid staking tokens (LSTs) allow holders to access exposure to staking rewards without operating a node, and can also be used in DeFi protocols to generate extra yields. eETH differentiates itself from competitors by also offering holders exposure to restaking yields via EigenLayer<\/a>.<\/p>\n \u201cStaking with eETH on EtherFi automatically restakes on EigenLayer and accrues staking rewards while allowing users to use eETH in other DeFi protocols,\u201d EtherFi said.<\/a> \u201cNo other liquid staking protocol has this capability.\u201d<\/p>\n EtherFi added that its technical architecture uses sharding to ensure that stakers retain control over their keys, whereas node operators generate the keys for rival LST protocols.<\/p>\n <\/a><\/p>\n eETH\u2019s impending mainnet launch comes as Lido, the top LST provider, is facing increasing criticism over refusing to self-limit its staking.<\/p>\n According to Dune Analytics, Lido\u2019s validators control 31.6%<\/a> of staked Ether\u2019s supply. Danny Ryan<\/a> of the Ethereum Foundation recently warned<\/a> that any singular entity amassing a third of Staked Ether poses \u201ca systemic threat to Ethereum.\u201d<\/p>\n \u201cAt a third, if someone served those three operators at Lido\u2026 and they say \u2018shut it down\u2019, then we have an issue with liveness,\u201d Ryan said. \u201cIt’s where we begin to potentially have issues.\u201d<\/p>\n On Oct. 13, EtherFi announced it will implement measures to self-limit its staking dominance at 25%<\/a> of both the staked Ether\u2019s supply and Ethereum\u2019s validator headcount into the protocol\u2019s smart contracts. EtherFi has attracted around 18,000 ETH since beginning its staged rollout<\/a> in April.<\/p>\n \u201cWe think it’s irresponsible to not commit to self-limiting,\u201d Mike Silagadze, the founder and CEO of EtherFi, told The Defiant.<\/p>\n Lido\u2019s dominance is down from 32.5% in early September.<\/p>\n Start for free<\/a><\/div>\n EtherFi is betting that offering native restaking yields through EigenLayer will attract users away from LST incumbents.<\/p>\n EigenLayer allows stakers and LST holders to earn additional revenue by securing an Actively Validated Service<\/a> (AVS) module.<\/p>\n While Ethereum validators process transactions written in the Solidity programming language for the Ethereum Virtual Machine (EVM), EigenLayer leverages Ethereum\u2019s staking layer to validate non-EVM code through its AVS modules.<\/p>\nLido faces new competition<\/h2>\n
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EigenLayer<\/h2>\n