Purchases of Ether.Fi tokens for ETHFI stakeholders
Decentralized financial (DeFi) protocol Ether.Fi has proposed to set aside a portion of the protocol's revenues to buy back native Ethereum tokens and distribute them to stakeholders, according to a post on the Ether.Fi community management forum.
Ether.Fi proposes to “allocate 5% of protocol revenue to reward ETHFI stakeholders to improve ETF services, strengthen the market, and align user incentives with Ether's growth.” .Fi ecosystem,” said a Dec. 16 post.
The Ether.Fi team described the 5% revenue allocation as a “starting point” and indicated that the reward would initially be limited to token holders who have registered ETHFI for at least a month.
The proposal will be decided later this week following a tokenholder vote, according to the post. Ether.Fi already uses protocol revenues to buy back ETHFI's main liquidity pool.
Ether.Fi Fees and Earnings. Source: Defillama
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Liquid re-simulations
Ether.Fi, a liquid reset protocol, is the fourth most popular DeFi protocol, with nearly $10 billion in total value locked (TVL), according to Defillama.
Rescheduling involves taking a previously staked token – escrow with a validator in exchange for a reward – and using other protocols to secure it at the same time.
Liquid Recourse Tokens (LRTs) represent a tradable claim on the stock of repossessed assets.
In the year Since its launch in 2023, Ether.Fi has generated roughly $60 million in total revenue from fees and other revenue streams, Defilama said.
Cumulative TVL in DeFi is approaching all-time highs in 2021, thanks in part to the popularity of the rerun and LRT protocols.
EigenLayer is the most popular replication protocol with a TVL of about $18.5 billion. Ether.Fi competes with LRT protocols including Renzo and Kelp.
“all in all [Ether] TVL for the top 5 LRTs currently sits at around 3.38m ETH, worth around $12.5 billion.
DeFi protocols are increasingly pushing for token holders to contribute a share of protocol revenues, with projects including Etena, Sky (former developer) and Awen creating mechanisms to add value to their native tokens.
In the year On November 15th, Aetna, a production stablecoin issuer, agreed to share a portion of nearly $200 million in protocol revenue with token holders.
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