weETH

02How yield accrues

weETH is the non-rebasing wrapper of ether.fi's eETH. eETH itself is a liquid restaking token (LRT): users deposit ETH with ether.fi, which both stakes the ETH with vetted node operators on Lido's validator infrastructure and restakes the same capital on EigenLayer to secure third-party Actively Validated Services (AVSs). eETH rebases like stETH, with balance growing daily as both reward streams land. weETH wraps that rebasing claim into a fixed-share token that appreciates against eETH via an on-chain rate function (getRate()), the same accounting trick wstETH uses against stETH. DeFi protocols import weETH instead of eETH because most lending contracts don't tolerate rebasing collateral. Yield stack: (i) Ethereum consensus + execution rewards from the staked-ETH leg, currently ~2.5% (the same rate wstETH yields). (ii) EigenLayer restaking points + cash AVS rewards, currently small but growing as more AVSs go live (today ~0.5–1% on top, highly variable). (iii) ether.fi loyalty points (off-chain incentive program; not in the on-chain rate). The realised on-chain rate as measured by getRate() growth is the consensus + execution + cash AVS portion, currently around 3–3.5% annualised. We snapshot getRate() every 6h via on-chain eth_call and annualise the 24h ratio, using the same methodology as wstETH, just a different selector. Risk surface relative to plain ETH staking: (a) ether.fi-specific smart-contract risk (the LiquidityPool contract managing deposits and the EtherFiNode operator framework; multiple audits); (b) EigenLayer slashing risk, where the restaked ETH can be slashed if an AVS that ether.fi delegates to has a fault. ether.fi has so far only delegated to a curated whitelist of AVSs and slashing has not yet been activated in production, so today this is a future-risk rather than realised-risk surface; (c) operator concentration: ether.fi runs through its own permissioned operator set (smaller than Lido's), which is a centralisation tradeoff. Asset rating: A (Prime, one notch below wstETH at AA). Same underlying Ethereum consensus yield with an extra restaking layer that adds yield but also unscored slashing risk. Track record < 2 years vs Lido's 5+ years. ether.fi remains by far the largest LRT issuer (>$5B in eETH circulating) and the standard-bearer of the restaking thesis.