What makes ether.fi different from other staking protocols?
ether.fi offers truly decentralized staking. The staker, not the node operator, owns all the keys.
How does ether.fi allow users to keep their keys?
Before the staker stakes 32 ETH, they use the ether.fi Desktop Application to generate a mnemonic, withdrawal credentials, and validator keys. With other protocols, this key generation is performed on a centralized server by the node operator. Via the ether.fi protocol, the staker then shares an encrypted copy of the validator key with the node operator (required for validation duties).
What kind of yield can stakers expect?
We anticipate staking yields on ether.fi to be greater than those offered by competing protocols. The majority of these benefits will be realized in Phase 3 of our rollout: our individually mapped nodes have a programmable surface area for additional service offerings and revenue. However, the protocol is still limited by yields paid on ETH staking generally: https://ethereum.org/en/staking.
What are the T-NFT and B-NFT? How do they work?
For every 32 ETH staked via ether.fi’s protocol, a pair of NFTs are minted: one T-NFT, one B-NFT. Together they represent a single Ethereum validator. The T-NFT, or Transferrable NFT, represents a 30 ETH interest in the validator and will offer holders a significant interest in the validator’s net rewards. The B-NFT, or Bonded NFT, represents the remaining 2 ETH stake, and delivers a superior yield, but is accompanied by additional duties and risks. The B-NFT holds the validator key – must monitor and exit the validator upon poor performance — and its 2 ETH functions as a deductible in the event of missed validation duties or slashing.
When is ether.fi planning to launch on mainnet?
We’re targeting April of this year.
What is eETH? How does a Liquid Staking Derivative work?
eETH is a passive, low-risk way to share in the rewards of Ethereum staking via ether.fi’s protocol. To purchase eETH one simply goes to ether.fi’s Liquidity Pool (LP tab on the decentralized application) and swaps ETH for eETH. As staking rewards accrue to the pool of validators, the average ETH claim for each eETH token increases. When you sell, you’re returned your share of ETH in the pool.
How long does it take to withdraw my ETH?
Withdrawals from the ether.fi staking protocol will generally follow the Ethereum Foundation’s plan for staking withdrawals outlined here: https://ethereum.org/en/staking/withdrawals.
No withdrawals from specific validators will be possible before the Shanghai (Execution layer) and Capella (Consensus Layer) upgrades. These are expected in March or April of this year. Once implemented, these upgrades will result in sweeps of rewards from validators to withdrawal addresses at defined intervals (the number of validators is the key determinant). They’ll also enable complete withdrawals from validators (balance + net rewards returned to withdrawal address).
Importantly, withdrawals or *transfers* to and from eETH to ETH will always be available via our liquidity pool. For those looking to acquire exposure to staking yields, simply buy eETH. Reducing exposure is achieved with a corresponding sale.
Who can deposit ETH?
ether.fi will roll out staking in phases. The first phase with anticipated mainnet release later this year will enable a user to stake in 32 ETH increments (the deposit size required by the Ethereum staking contract). Later phases will enable users to stake smaller amounts of ETH for partial validators as well as select specific node operators from our list of trusted node operator partners.Early Adopters:
Additionally, we’re offering an early adopter program for users who wish to deposit ETH and several staking derivatives in exchange for the opportunity to accrue points in our reward pool. Points will later be used to boost yields. These deposits can be withdrawn at any time, and will also be fully transferable into the ether.fi protocol.