coindesk.com
Ether.Fi, the biggest among a fast-growing new breed of blockchain projects known as "liquid restaking protocols," will have its new token ETHERFI offered next week on crypto exchange Binance's Launchpool.
Binance made the announcement on its website, adding that the exchange would be the first to list the token.
Launchpool is a Binance platform that allows users to stake existing crypto assets to earn new tokens when they become available. It is a way for users to participate in the early stages of a new project and earn rewards.
"Users will be able to stake their BNB and FDUSD into separate pools to farm ETHFI tokens over four days," with farming starting at 00:00 UTC on March 14, Binance said. "Binance will then list ETHFI at 12:00 UTC on March 18." Trading pairs will be available in ETHFI versus bitcoin (BTC), stablecoin (USDT) and BNB TOKEN, among others.
According to the post, there will be a maximum token supply of 1 billion ETHFI, and Launchpool token rewards of 20 million, or 2% of the max token supply.
The initial circulating supply will be 115.2 million, or 11.5%.
Watch: Ether.Fi CEO Mike Silagadze Joins The Protocol Podcast as Guest Host Liquid restaking protocols are designed to reuse Ethereum's proof-of-stake blockchain to secure other networks and protocols – piggybacking off the original restaking protocol, EigenLayer to give users another source of yield for their staked ether (ETH) tokens but adding to risks.
Crypto traders have piled deposits into the protocols because of the extra yield available as well as the potential for reaping rewards, such as points or airdropped tokens.
Ether.Fi is the biggest liquid-restaking protocol based on the crucial metric of total value locked, or TVL, according to the data site DeFiLLama. The project has $2.3 billion of TVL – similar to deposits – versus $1.5 billion for the second-biggest, Puffer Finance.