Ether.Fi, a prominent player among the emerging liquid restaking protocols, is set to introduce its new token, ETHERFI, on Binance’s Launchpool next week. Binance announced this development, highlighting its role as the first exchange to list the token.
Launchpool, a platform by Binance, enables users to stake existing crypto assets to earn new tokens upon their release, providing an opportunity for early project participation and reward accumulation.
Beginning at 00:00 UTC on March 14, users can stake BNB and FDUSD into separate pools to farm ETHFI tokens every four days. Binance plans to list ETHFI at 12:00 UTC on March 18, offering trading pairs with BTC, USDT, and BNB TOKEN, among others.
The token’s maximum supply is capped at 1 billion ETHFI, with Launchpool token rewards constituting 20 million, or 2% of the total supply. The initial circulating supply will be 115.2 million, representing 11.5% of the total.
Liquid restaking protocols leverage Ethereum’s proof-of-stake blockchain to secure other networks and protocols, expanding yield opportunities for staked ETH tokens. While appealing for the additional yield potential, these protocols introduce additional risks.
Crypto traders have shown significant interest in such protocols due to the allure of extra yield and potential rewards, such as points or airdropped tokens.
Ether.Fi leads the liquid-restaking space by total value locked (TVL), boasting $2.3 billion in TVL, as per DeFiLLama data, compared to $1.5 billion for its closest competitor, Puffer Finance.