PR with Payload
Summary:
The ether.fi team proposes a Balancer Boosted Gauge for an eBTC-WBTC pool on Ethereum.
References/Useful links:
Link to:
• 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 the first decentralized, non-custodial delegated staking protocol with an LRT (eETH, eBTC). One of the distinguishing characteristics of ether.fi is that stakers control their keys. Those who work on the protocol strive for the following:
- Decentralization is the primary objective. ether.fi will never compromise on the non-custodial and decentralized nature of the protocol. Stakers must maintain control of their ETH.
- The ether.fi protocol is a real business with a sustainable revenue model.
- ether.fi will do the right thing for the Ethereum community, always. If and when the team messes up, ether.fi will own it and course correct quickly.
eBTC is Ether.fi’s flagship Bitcoin-backed liquid restaking token. Created to service the growing demands of alternate collateral within restaking, eBTC simplifies yield optimization and expands utility. eBTC is backed by LBTC, through a partnership with Lombard, to bring the first dual yield (staking + restaking) Bitcoin product to market. Staking will be conducted through Babylon, with restaking serviced through a combination of Eigen Layer, Symbiotic, and Karak. Users are able to deposit LBTC, WBTC & CBBTC.
Motivation:
eBTC is an LRT that allows users to restake their BTC, accrue staking rewards, and receive additional rewards through restaking on EigenLayer, Symbiotic and Karak. As of Dec 13th, approximately 2,175,000 ETH ($8.5B) in TVL has been deposited into the ether.fi protocol with 6500 BTC ($650M) dedicated to the eBTC LRT. You can view additional ether.fi stats on Dune.
Users are given eBTC on a 1:1 basis with their chosen BTC deposit asset. As mentioned above, ether.fi is also the first LSP to natively restake on EigenLayer, Symbiotic, and Karak — a move that helps improve network efficiency and provides stakers with additional rewards for their network contributions. ether.fi has also launched a series of partnerships with DeFi protocols to incentivize users and drive liquidity for eBTC to various platforms.
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. Specific to eBTC, exchange rate oracles which also monitor the reserves have been built by eOracle.
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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. Specific to eBTC, there are additional timelocks added which are required to update the exchange rate from the standard 1:1 ratio.
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Market History: 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 eBTC-WBTC pool on Balancer is intended to serve as one of the primary liquidity sources for the token on Ethereum. The pairing of eBTC with WBTC will maintain critical liquidity sourcing for a smooth trading experience, while yielding added rewards for the liquidity providers.
Contracts
eBTC on Ethereum: 0x657e8C867D8B37dCC18fA4Caead9C45EB088C642
eBTC/WBTC Base pool on Balancer: Liquidity Pool (v2): Balancer eBTC/WBTC
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): 0x5d0aa3b7f4429e999c95d392e6c50c6555cd7816
gaugeType(string): Ethereum