Liquid staking tokens (LSTs) have become highly popular within the Ethereum community recently.
Prominent examples include Lido (stETH), Rocket Pool (rETH), and Coinbase (cbETH). These tokens enable users to maintain liquidity while earning staking rewards in ETH, eliminating the need to run their own validator setups.
Just want to get started and earn points? See here 👇🏼
The basic idea is to deposit ETH and receive an LST representing the deposit, which can be held or utilized as desired, all while accumulating ETH staking rewards over time.
Numerous platforms have adopted this model, but currently, there's considerable excitement within the LST community surrounding restaking, a technique introduced by EigenLayer. Restaking involves using LST deposits to provide validator services to projects seeking external security infrastructure.
It's a mutually beneficial model: depositors earn ETH staking yields and validation revenues from EigenLayer-tapped projects, while those projects gain Ethereum's decentralization and security without establishing their own trust networks.
The Catch: EigenLayer enforces LST deposit caps in these early stages, quickly reached whenever raised due to high anticipation around a future EigenLayer airdrop.
Fortunately, EigenLayer offers native restaking without deposit caps, with projects like ether.fi streamlining this process into a single deposit.
Launched in 2023, ether.fi introduces eETH, an LST where underlying ETH deposits are natively restaked through EigenLayer, allowing depositors to earn ether.fi Loyalty Points and EigenLayer Restaked Points, both with airdrop eligibility implications.
To Participate: deposit ETH (minimum = 0.001 ETH) to mint eETH at a 1:1 ratio, then start earning points.
Using an EOA like MetaMask? Visit app.ether.fi, connect your wallet, input your desired deposit amount, press "Stake," sign the stake transaction, and you're in.
Keep track of your points through the app.ether.fi/portfolio page, where the ether.fi points formula is ETH staked x 1,000 x days staked.
Restaking projects like ether.fi offer a way to maximize rewards with a single deposit, so don't overlook them.
Using Rainmaker for gasless, 1-tap restaking?
- Search etherfi on the "Invest" tab of the app.
- Click on the card and deposit however much you'd like.
- Track your points on the "Quests" tab.