The ether.fi staking protocol’s native utility and governance token, ETHFI, will begin trading on Binance from Monday, March 18.
Binance has announced ether.fi (ETHFI), a new project on Binance Launchpool. ETHFI is a decentralized and non-custodial delegated Ethereum staking protocol that helps to maximize staking and re-staking rewards in collaboration with EigenLayer.
ETHFI Staking and Farming Details on Binance Launchpool
According to an official Binance announcement, native tokens of ether.fi protocol – the 49th project on Binance Launchpool – will begin trading on Monday, March 18, at 12:00 UTC. However, users will be able to access the Binance ETHFI webpage before the Launchpool officially kicks off. Binance will list ETHFI for trading with five pairs, including ETHFI/BTC, ETHFI/BNB, ETHFI/USDT, ETHFI/FDUSD, and ETHFI/TRY.
Users can farm ETHFI tokens for four days from Thursday at 00:00 UTC by staking BNB and FDUSD into separate pools. The staking period will end on Sunday, March 17, at 23:59 UTC. The ETHFI platform has allocated 20 million ETHFI, 2% of the maximum token supply, for token rewards. The BNB pool gets 80% (16 million ETHFI) with a maximum of 4 million ETHFI in daily rewards, while the FDUSD pool gets the remaining 20% (4 million ETHFI), with 1 million ETHFI in daily rewards. For each day between the 14th and 17th, the total reward is 5 million ETHFI.
Throughout the staking period, Binance will take multiple snapshots of user and total pool balances at random times each hour to determine hourly average balances and calculate rewards. Users can accumulate these rewards and withdraw them to their spot accounts at any time. In addition, users can unstake their funds at any time and immediately participate in other available pools.
ETHFI has a maximum supply of 1 billion tokens, with 115.2 million (11.52%) as the initial token supply. The hourly hard cap for each user is 16,666.66 ETHFI and 4,166.66 ETHFI in the BNB and FDUSD pools, respectively. Users should note that the process requires each interested user to fulfill know-your-customer (KYC) requirements.
ETHFI Token Distribution and Function
Token distribution, in addition to the 2% allocated to Binance Launchpool, includes an airdrop of 11% (11 million ETHFI) of the maximum token supply. The distribution also includes liquidity at 3%, while the Protocol Guild gets 1%. Furthermore, the ETHFI team gets 23.26%, while investors and advisors will receive 32.5%. Finally, 27.24% of the total token supply is allocated to the DAO Treasury.
The ether.fi protocol allows users to retain control of their keys while delegating staking, the only protocol that allows this. This method was deliberately introduced to reduce the counterparty risk born by the protocol, as well as its node operators. Via EigenLayer, ether.fi natively re-stakes all Ether (ETH) deposits. EigenLayer then repurposes the staked ETH for the benefit of rollups, oracles, and other external systems. This helps to increase the yields ETH stakers enjoy.
The ETHFI token will function as the native utility and governance token for the staking protocol. Its function will cover the ether.fi treasure, protocol fees and distributions, and key protocol upgrades.
next