Ether.fi is a self-proclaimed non-custodial ETH staking platform that allows customers to distribute their staked ETH to node operators for rewards with out having to disclose their non-public key data.
That is achieved via utilizing a shared validator key that makes use of an built-in encryption scheme (ECIES). Stakers generate encrypted validator keys which are related to a profitable bid generated by a node operator public key. This then forwards data again to the node operator who can decrypt the knowledge utilizing a registered non-public key.
Supply: Ether.fi
That is totally different from staking with Lido, or centralized node operators, Mike Silagadze, the CEO of Ether.fi, instructed Blockworks.
“The best way it really works is you ship them your ETH and so they generate the non-public keys that management the keys,” Silagadze stated. “There’s a belief assumption that they are going to return their ETH to you.”
Against this, Ether.fi ensures that stakers generate their very own non-public keys — stakers solely share an encrypted copy of their key with validators.
This doesn’t imply {that a} staker’s ETH is protected from slashing circumstances, as their ETH remains to be getting used to function the nodes.
So what’s Ether.fan?
Ether.fan is Ether.fi’s membership loyalty program, constructed on high of its liquid staking token eETH.
EETH — like most liquid staking derivatives (LSTs) — allows customers to take part in securing the Ethereum community whereas additionally actively collaborating in DeFi actions with out having to lock up 32 ETH.
With Ether.fan, customers can stake ETH and mint a fan NFT. The method includes changing the consumer’s ETH into eETH, which is then wrapped inside an NFT. This NFT not solely represents possession, nevertheless it additionally comprises rewards and membership factors for the consumer.
“It’s designed for those that have smaller quantities of ETH,” Silagadze stated. “We would like a product that’s usable by the typical particular person moderately than simply being restricted to establishments.”
Basically, because of this a fan NFT is solely a wrapped staked ETH that accumulates rewards over time. The longer a consumer holds the NFT, the extra loyalty factors they are going to achieve. The upper the loyalty factors, the larger the quantity of yield and rewards the consumer will obtain.
There are 4 membership tiers: bronze, silver, gold and platinum. Completely different tiers may have totally different rewards.
“We copied the airline mannequin principally,” Silagadze stated. “The mannequin is you’re gathering airline factors and also you’re both cashing them in or promoting them.”
If a consumer withdraws ETH, their membership standing shall be bumped down, Silagadze notes. If a consumer plans to withdraw greater than 50% of their ETH, the platform will burn their NFT.
“It makes extra sense to promote the NFT [on] like OpenSea or one thing so that you just get to seize the premium,” Silagadze stated.
Ether.fan NFTs will even have a task in governance, permitting customers to take part in Ether.fi governance with out the protocol having to situation its personal native token.
All ETH that goes via Ether.fan will even go to solo stakers, Silagadze notes.
“It goes in the direction of launching Ethereum nodes in numerous geographies, as a result of proper now Ethereum is definitely fairly centralized in the case of the place the nodes are positioned,” he stated. “We’ve launched the primary node in Guatemala and we’ve got others which are within the queue.”
