Ether.fi to sever final structural ties with EigenLayer by the end of this quarter

Odaily News: Ether.fi plans to sever the final structural link between its staking tokens and the restaking protocol EigenLayer by the end of this quarter. As of August, less than 1% of Ether.fi's assets remained in restaking, and EigenPod withdrawal credentials are expected to be removed before the end of the year.

When Ether.fi launched in 2024, it automatically restaked user deposits on EigenLayer, but in August of this year it stripped the restaking feature from weETH, converting it into a standard liquid staking token. Users who wish to continue participating in restaking must opt for a separate token based on Symbiotic.

Ether.fi CEO Mike Silagadze stated that the exit was primarily driven by risk considerations, as restaking now lacks meaningful yield opportunities, while stakers' concerns about related risks have increased. (CoinDesk)