Benefits of staking with

ether.fi

Staking with ether.fi can be safer and generate higher returns. ether.fi offers a number of services to institutional stakers that make staking easy and compliant.

ETH Fund

ether.fi operates [CIMA] registered fund that deploys capital via ether.fi contracts. The fund is audited, with a third party fund administrator that provides monthly reporting. Institutional stakers can work with us to deploy capital in a managed way with no management or performance fees.

Custody

ether.fi has partnered with registered custodians in a number of geographies who can safely store eETH and NFTs. Institutional stakers can move capital into ether.fi and work with our partner custodians to keep their ETH safe.

DeFi Integrations

ether.fi is integrated with DeFi protocols and can accommodate bespoke investment structures via the ETH fund. This way institutional investors can stake their ETH and participate in DeFi. Please reach out to us to learn more.

ETH Staking
Considerations

When choosing how to stake your ETH it’s important to consider a number of factors. Here are some things to think about.

Yields

In crypto there is a saying that if you don’t know where the yield is coming from, you are the yield. It’s important to do deep diligence to understand the underlying source of staking rewards and the tradeoffs that come with boosted (e.g. via leverage) yields. ether.fi yield comes from staking rewards and revenue generated via the protocol. No leverage, no rehypothecation.

Custody

Arguably one of the most essential things to get right is custody. If you don’t have custody of your ETH, or don’t at least have a trusted custodian, you’re taking significant and opaque counterparty risk. One of the most important question to ask is whether you have control of *both* the withdrawal credentials and the validator key. The latter is often sadly forgotten.

DeFi Benefits

One of the benefits of staking via ether.fi is DeFi integrations which allow for bespoke investment strategies. Please reach out to us to learn more.

Counterparty Risk

Counterparty risk can take many forms, especially in crypto, and it is often intertwined with custody. It’s not just the obvious blow-up scenarios that you need to worry about. It’s important to consider regulatory and jurisdictional questions as well.

Investment vehicles

Institutional staking often requires special care, and is not as simple as signing a transaction on a dapp with a hardware wallet. ether.fi provides a managed service to institutional stakers with our ETH fund, with no management fees. The fund is based in Cayman, regulated by CIMA, audited and has a third party administrator. This white glove service doesn’t compromise custody of your ETH and has numerous potential tax and risk benefits, depending on your domicile.

Staking Infrastructure Partners

Staking through EtherFi delegates node operation to one or more of our node infrastructure partners while allowing you to retain custody of your ETH and participate in DeFi. Contact us to learn more.