PR with Payload:
Summary
The ether.fi team proposes a Balancer Boosted Gauge for a wstETH-weETHs pool on Ethereum, with no emissions cap. This will serve as a 100% yield bearing pair.
References/Useful links:
• Website - https://www.ether.fi/
• Documentation - ether.fi Whitepaper | ether.fi
• Github Page - etherfi-protocol · GitHub
• Discord - ether.fi
• Twitter - x.com
Protocol Description:
ether.fi is a decentralised, non-custodial liquid staking protocol built on Ethereum, allowing users to stake their ETH and participate in the DeFi ecosystem without losing liquidity. The protocols weETHs is a liquid restaking token, serving as a representation of ETH staked on the Beacon Chain and restaked on Symbiotic. Users can deposit ETH into the liquidity pool on Ethereum Mainnet to mint weETHs, hold weETHs to accrue rewards, and use weETHs within DeFi or swap it back to ETH at any time via the liquidity pool. The protocol currently employs a permissioned validator set, however this will transition to permissionless based on the protocol roadmap.
ETH staked through the ether.fi liquidity pool into weETHs accrues normal Ethereum staking rewards and will also be natively restaked with Symbiotic. Staking with weETHs on ether.fi automatically restakes that ETH to Symbiotic and accrues normal staking rewards while allowing users to keep composability on their weETHs in other DeFi protocols. Being a liquid representation of staked Ethereum, the price of the token is aligned to the price of ETH.
Through these mechanisms, weETHs acts as a conduit for individuals to engage in Ethereum’s staking & restaking process with the added liquidity, making it easier for them to enter and exit staking positions while also benefiting from boosted rewards.
Motivation:
ether.fi is looking to seed a wstETH-weETHs pool on balancer to serve as a primary source of liquidity for weETHs on Ethereum. Incentivizing a Balancer pool will continue to boost the liquidity of the LRT on Ethereum. Higher liquidity ensures that traders and investors can easily enter or exit positions, which is essential for the overall usability and attractiveness of the LRT token within the DeFi ecosystem.
Specifications:
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Governance: - Currently, the protocol utilizes a DAO and a governance token model to push large initiatives and objectives.
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Oracles: - The Protocol relies on an oracle for withdrawals and beacon state, however, the reliance on an oracle for beacon state is set to go away in an upcoming Ethereum upgrade. The Oracle is based on the hash consensus mechanism and run by the internal & external committee members.
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Audits: - Audit reports for the ether.fi protocol are found on the GitBook page - Audits - ether.fi. The audits have been carried out by reputable firms such as Certik, Zellic, Nethermind, Omniscia and Solidified to ensure the security of the protocol. An audit competition was also recently completed through Hats Finance.
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Centralization vectors: - The centralization vectors primarily relate to the Oracle which is run by a multi-party committee. The price (staking rewards for rebasing) and the validator management (spinning up new validators and exiting them for liquidation) are also tied into the functionality of the protocol oracle.
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Market History: - weETHs has been deployed and functional since June '24. Market history and protocol information can be found here on the ether.fi Dune dashboard - https://dune.com/ether_fi/etherfi
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Value: - The wstETH-weETHs pool on Balancer is intended to serve as one of the primary liquidity sources for the token on Ethereum. The pairing of wstETH with weETHs will maintain the originally intended smooth trading experience, while yielding more rewards for the liquidity providers.
weETHs on Ethereum: 0x917cee801a67f933f2e6b33fc0cd1ed2d5909d88
wstETH/weETHs Base pool on Balancer: Balancer 2
Specification
Transaction: The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv4 at 0x5DbAd78818D4c8958EfF2d5b95b28385A22113Cd and call the addGauge function with the following arguments:
gauge(address): 0x0Bb8B971AaF99eddfddE2e71736eBEBe8CC7769b
gaugeType(string): Ethereum