Ether.fi has removed restaking from weETH and shifted that higher-risk exposure to a separate token, weETHs. The change comes as Ethereum’s staking reward model faces renewed debate among researchers and staking providers.
Ether.fi has removed restaking from weETH and shifted that higher-risk exposure to a separate token, weETHs. The change comes as Ethereum’s staking reward model faces renewed debate among researchers and staking providers.
The change matters because it gives holders a clearer distinction between standard staking and restaking. Staking involves locking ether to help secure Ethereum and earn rewards, while restaking uses that same ether to help secure additional services in exchange for potential extra rewards.
Ether.fi has split restaking out of its main Ethereum staking token, weETH, turning it into a token focused on ordinary Ethereum staking rewards. Users who want additional restaking exposure now need to hold a separate token, weETHs.
The change matters because it gives holders a clearer distinction between standard staking and restaking. Staking involves locking ether to help secure Ethereum and earn rewards, while restaking uses that same ether to help secure additional services in exchange for potential extra rewards.
That added yield also brings added risk. According to the source, restaking can expose holders to penalties from more than one system, meaning a failure in either layer could affect part of a user’s deposit. Before the change, weETH holders had both staking and restaking exposure bundled together.
Ether.fi is one of the larger staking businesses in crypto, with about $3.55 billion in customer deposits, according to DeFiLlama data cited by CoinDesk. CoinDesk also reported that Ether.fi has generated roughly $223 million in annualized fees and about $51 million in annualized revenue.
The move arrives as Ethereum’s staking economics are being debated. A group of Ethereum researchers proposed ending staking rewards once locked ether reaches a set threshold, arguing that the current system can encourage more staking and potentially concentrate ether with large custodians. Ether.fi founder Mike Silagadze criticized the proposal, saying it could hurt smaller stakers and products built around staking rewards.
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