Ether.Fi protocol raises $5M to decentralize staking

North Island Ventures and Chapter One have conducted a fundraising round for Ether.Fia new self-deposit liquid staking protocol.

This Tuesday, Ether.Fi has announced that it has raised 5.3 million dollars from crypto VCs North Island Ventures and Chapter One. The round also includes participation from Node Capital, Arrington Capital and BitMEX co-founder Arthur Hayes.

The startup is developing a liquid staking protocol based on the decentralization and, as the name suggests, Ethereum-compatible. “We will never compromise on the non-custodial and decentralized nature of the protocol. Stakers must keep control of their ETH “, says Ether.Fi on its website.

As a reminder, the liquid staking allows users to stage tokens while retaining the ability to invest locked funds in other protocols.

In a blog post, Ether.fi claims to differ from other protocols in that users control their keys. They generate and thus hold their own stored keys.

In detail, an NFT is created for each validator launched via the protocol. Its token eETH is issued from a cash pool that contains the NFTs. The non-fungible tokens control the 32 staged ETHs and store validator-related metadata.

With ether.fi, the staker controls his keys and retains custody of his ETH while delegating the staking to a node operator. This significantly reduces counterparty risk,” according to the startup.

The Ether.fi launch is scheduled on March 4th during the festival ETHDenver which is currently taking place in the United States.

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