EtherFi: A New Paradigm of Decentralized Finance for Non-Custodial Staking

Core Innovations

EtherFi breaks the deadlock of traditional staking models. On this platform, you don't have to hand over your ETH to a third party for custody; you hold the private keys yourself while earning two streams of income—Ethereum staking rewards + EigenLayer re-staking rewards. This combination is quite something.

Gameplay Breakdown

How to do non-custodial staking

EtherFi has introduced the Operation Solo Staker mechanism, which has two paths:

• Route 1: Lock 2 ETH as collateral, no need to operate and maintain your own verification node, DVT distributed verification technology helps you handle it.
• Route 2: Commit to operation and maintenance for 2 years, no deposit required, solo stake yourself.

The core logic is: the money is still yours, the key is also yours, and the risk is managed by you.

The Role of eETH

eETH is the platform's liquid staking token, operating as a rebasing ERC-20.

• You stake ETH → Obtain eETH
• eETH automatically re-stakes (on EigenLayer)
• Earnings are automatically accumulated, your eETH balance grows accordingly.
• Support for instant withdrawals without permission, no need to wait for the unlocking period.

This is much more flexible than traditional staking.

What the hell are T-NFT and B-NFT?

• T-NFT (Transferable): A staking certificate representing your share in the staking pool.
• B-NFT (Binding): Binds the verification node operator, only the holder can operate the corresponding validator.

This design eliminates the possibility of node operators misappropriating funds through a separated permission structure.

Why Can You Earn Double Returns

EigenLayer is a re-staking protocol that allows stakers to validate applications outside of Ethereum. EtherFi users participate through eETH, which means:

Base Earnings (ETH Validation Rewards) + Additional Earnings (Application Validation Rewards) = Total Earnings

But be aware of the risks: if there are issues with EigenLayer's applications (such as malicious actions by AVS operators), your staking may be penalized. EtherFi states that it will filter supported services through DAO governance, but this poses a centralization risk.

Financing and Roadmap

• Series A Financing: $23 million, strong background of investors
• Implemented: eETH launched, integration of Solo nodes in collaboration with Obol Labs, DVT integration
• In Plan: DAO governance, Token Generation Event (TGE), DVT Phase 2 fully automated

The significance of this operation

From a decentralized perspective, EtherFi lowers the participation threshold, decentralizes verification power, and supports solo staking, allowing more people to participate in the maintenance of the Ethereum network. Compared to traditional large-holder locked staking, this is indeed a more open paradigm.

From a收益 perspective, the dual yield structure of eETH is very attractive, but don't forget about the risks of smart contracts and penalties. This is not stable income; it is high risk for high returns.

Summary in one sentence: If you want to quality control your ETH while maximizing your returns, EtherFi is a good choice. But remember to do your homework and assess the risks clearly.