Ether.fi Separates Restaking from weETH Token
The Ether.fi protocol has made significant changes to its liquid staking system by separating restaking from its main token, weETH. According to a recent announcement, all restaking exposure has been removed from weETH and transferred to a new token called weETHs. This change aims to simplify the choice between traditional staking and restaking, which have different levels of risk and return.
The developers behind Ether.fi believe that separating these functions will provide users with more clarity and control over their assets. Previously, holders of weETH received both staking and restaking exposure, which increased the risk of penalties and partial deposit loss. The total value locked in Ether.fi is approximately $3.55 billion at the time of writing.
This change may be related to ongoing discussions about staking rewards on the Ethereum network. A recent proposal, EIP-8363, suggests burning part of validators' consensus rewards as a share of ETH in staking grows. This has been met with criticism from Ether.fi's founder, Mike Silagadze, who believes it would negatively impact small stakers and products built around staking rewards.