Greetings Moonwell family, Justin from Ether.fi here with a proposal for you!
Token Asset Name: weETH
Ether.fi is a decentralized, 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 eETH is a liquid restaking token (weETH is the non-rebasing equivalent),
serving as a representation of ETH staked on the Beacon Chain, which rebases
daily to reflect the associated staking rewards. Users can deposit ETH into the
liquidity pool on Ethereum Mainnet to mint eETH, hold eETH to accrue rewards,
and use eETH within DeFi or swap it back to ETH at any time via the liquidity
pool. The protocol currently employs a permissioned validator set, however we are transitioning to permissionless based on the protocol roadmap . ETH staked through the Ether.fi
liquidity pool accrues normal Ethereum staking rewards and will also be natively restaked with EigenLayer. Staking with eETH on Ether.fi automatically natively restakes that ETH to EigenLayer and accrues normal staking rewards while allowing users to keep composability on their eETH in other DeFi protocols. The eETH contract has been live since June 2023, with weETH launching to the open market on November 15th, 2023, and has approx. 1,758,428.72 ETH held within it. Being a liquid representation of staked Ethereum, the price of the token is aligned to the price of ETH. Through these mechanisms, eETH 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.
Benefits to the Moonwell Community
Ether.fi is looking to enhance liquidity for weETH on Base. Incentivizing a Moonwell pool will continue to boost the liquidity of the LRT on Base. 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 L2 DeFi ecosystem.
Users who deposit into Moonwell will also be able to earn Etherfi points and Eigenlayer points which count towards our Season 2 community allocations!
Use cases for weETH market on Moonwell
Having weETH on Moonwell will allow users to earn Etherfi points and Eigenlayer points while supplying and borrowing against weETH. This can be done by depositing weETH onto Moonwell and borrowing Against it.
Resources (Website, Social Media Links, and docs)
• Website - https://www.ether.fi/
• Documentation -
• Github Page -
• Discord -
• Twitter - https://twitter.com/ether_fi
Decentralization
You can find the bulk of our eETH is used as backing for weETH here along with the other top balance holders listed here.
https://etherscan.io/token/0x35fa164735182de50811e8e2e824cfb9b6118ac2#balances
· Governance: -
Currently, the protocol utilizes a multi signature wallet, with the signatories
being doxxed ether.fi executives. This has changed with the evolution of the protocol, moving to decentralized governance with a DAO and a governance token.
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 committee members. Initially, the ether.fi team
will be the only ones to operate the Oracle nodes, however as the protocol
grows, it will add more external parties to join the committee.
The exchange rate feed for weETH-ETH on Base has been deployed by Chainlink.
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.
Centralization vectors: - The centralization vectors primarily
relate to the Oracle until it becomes decentralized, in line with the protocol
roadmap. The price (staking rewards for rebasing) and the validator management
(spinning up new validators and exiting them for liquidation) are also
currently centralized for the early stages of the protocol to ensure mobility.
As mentioned above, the signatories currently consist of the doxxed executive
team at ether.fi, however this has been upgraded with the implementation of the ether.fi DAO and governance.
Market History: - eETH was first deployed November 15,
- Market history and protocol information can be found here on the ether.fi Dune dashboard - https://dune.com/ether_fi/etherfi
Value: - The weeth pool on Moonwell is intended to serve as a primary lending source
for the token on Base. weETH will maintain the originally intended smooth trading experience, while yielding more rewards for the liquidity provider via points.
weETH on Base: 0x04C0599Ae5A44757c0af6F9eC3b93da8976c150A