Summary
Ketju does not approve ether.fi (weETH): every holder shares any validator or restaking penalty, governance picks the services that can impose those penalties, and no dedicated operator bond absorbs them first. weETH is a non-rebasing claim on ether.fi’s pooled eETH. Deposits fund Ethereum validators, rewards change the eETH share rate, and the pool is also restaked through EigenLayer. ETHFI governance and the multisig that carries out its decisions choose operators, upgrades, economics and where pooled ETH is restaked. That adds a correlated source of loss, chosen by administrators, to ordinary ETH staking. The primary sources do not support the claim that AVSs reliably add 1% to 3%. ether.fi now says restaking rewards are paid separately through KING, and that slashable AVS exposure applies when the protocol opts in. The queued withdrawal and the documented instant route are credible ways to withdraw. We record observed or projected returns separately, and they do not decide this finding.
Review triggers
- ether.fi publishes live slashable AVS and operator allocations that match deployed contracts for 12 consecutive months
- Net restaking rewards exceed the approved plain-staking alternative by a written margin for 12 consecutive months, without points or unliquidated token emissions
- A funded first-loss layer becomes enforceable and absorbs validator and AVS slashing before depositor principal
- After a significant slashing event, ether.fi publishes exchange-rate, liquidation, recovery and withdrawal outcomes sufficient to model the loss
- A queued redemption and a secondary sale at the proposed size each pass the written time and slippage limits
Facts
- Verdict
- Not approved
- Type
- ETH staking
- Chains examined
- Ethereum
- Reviewed
- Last confirmed