The flexibility of Ethereum allows you to create various solutions to further improve transactions made on the blockchain. Rollups and cross-chain bridges are some examples. The ETHFI token protocol, which works on the platform, also attracts attention.
The Ether.Fi protocol allows you to stake Ethereum without custody. The technology brings a series of new concepts, which enable blockchain operations that were previously unable to occur. Get to know some of them.
Non-custodial staking
Staking happens when the user leaves a certain amount of cryptocurrencies locked in a vault to validate more blocks on the blockchain. While they remain there, they cannot be used for other purposes because they serve as collateral for transactions.
The ETHFI token protocol allows users to stake directly from digital wallets, without compromising the platform's liquidity. With this system, holders maintain control over the coins.
With this technology, an NFT is produced for each validator who enters the stake. P non-fungible token stores metadata related to the validator. The process generates two types of NFT: T-NFT (transferable) and B-NFT (linked).
T-NFT and B-NFT
In the staking process, the user deposits 32 ETH into the Ether.Fi protocol to run the validator. This creates a vault for withdrawal, generating T-NFT and B-NFT. The transferable token represents 30 ETH and can be deposited into the liquidity pool.
The B-NFT is linked to the user (soulbound token) who has the validation key, which guarantees the security of the process. It is worth about 50% more than the T-NFT, but to get it back you need to leave the validator. You can stake B-NFT by depositing ETH into the liquidity pool.
Restaking
The ETHFI token protocol also features restoking, which allows you to use the same ETH more than once for staking. It is possible to use the coin in more than one simultaneous betting process and guarantee the liquidity of several protocols.
This allows the bettor to have more rewards for betting on more than one system. The DeFi platform makes re-staking possible due to integration with the Eigen Layer protocol, developed on Ethereum to stake multiple tokens at the same time.
To participate in Eigen Layer, investors need to accept taking part in several stakes at the same time. You can use ETH, liquid staking tokens, such as stETH (staking derivatives), or liquidity providers (LP tokens), provided by a DEX.
eETH Token
The eETH token is native to the Ether.Fi protocol. It is for governance, that is, whoever has it has the right to vote in assemblies and discussions in the community. At these meetings, members make suggestions to improve the technology and solve problems encountered in execution.
eETH is also a liquid staking derivative token made under the ERC-20 protocol. When staking with it, it is possible to receive rewards on both the Ether.Fi and Eigen Layer protocols, without having to run nodes on the platform.
The ETHFI token protocol uses sharding technology to manage users' keys. This consists of dividing the database into smaller information, managed more quickly. The objective is to bring scalability to operations, without leaving security aside.
Learn more about cryptocurrencies
The ETHFI token protocol brings more staking and restocking possibilities for investors. To access this and dozens of other cryptocurrencies, visit the NovaDAX website, register and start investing now!
