About EtherFi (ETHFI)
EtherFi (ETHFI) actually began its journey long before the EigenLayer launch, placing their focus on the decentralization of the Ethereum validator scene through increasing accessibility to ETH staking, while at the same time maintaining a non-custodial approach. They recognized the high barriers to entry associated with running a validator node, stemming from technical requirements and high capital requirements.
EtherFi first launched their non-custodial staking service, enabling users to stake ETH in 32 ETH increments with a set of selected and trusted node operators. This service allowed stakers to maintain control of withdrawal keys, ensuring that they had full control of their tokens at all times.
The other side of their roadmap was to further decentralize the ETH validator node ecosystem, which they kicked off in August 2023. This initiative leveraged distributed validator technology (DVT) to distribute validator keys across a set of operators to minimize risks while pushing decentralization of the network. User pursuing staking through this path can choose one of two paths:
- Path 1: Permissionless staking via DVT, where users provide the hardware and a 2 ETH bond. EtherFi supports via technical support and the remaining 30 ETH required to form the 32 ETH stake.
- Path 2: Users must pass a KYC and selection process as well as provide the hardware required. However, the 2 ETH bond from Path 1 is no longer required, with EtherFi providing all 32 ETH in this case. This path is also known as Operation Solo Staker.
Through both of these measures, EtherFi distributed validator operations geographically across a network of diverse and independent node operators, while reducing the barrier to entry tremendously for node operation.
Reviews
There are no reviews yet.