Hyperithm, a Korean digital asset management firm, has invested in ‘Etherfi’, an Ethereum liquid restaking protocol. Liquid restaking involves re-staking tokens (such as ETH, SOL) that have already been staked in Proof of Stake networks like Ethereum and Solana. This is done to enhance network security and provide security infrastructure to other decentralized protocols that require it.

Etherfi is a protocol enabling users to engage in liquid restaking while retaining direct custody of their virtual assets. It is the first to offer a Liquid Restaking Token (LRT) based on the Ethereum chain. By simplifying the participation process in Ethereum restaking and offering competitive returns, Etherfi aims to enhance the convenience and efficiency of decentralized Ethereum staking.

Etherfi distinguishes itself in the DeFi space with an innovative design that allows users, who avail of Ethereum staking services, to manage their private keys independently. Additionally, Etherfi has introduced a liquid restaking token (LRT) called ‘eETH’ to increase users’ capital efficiency.

Holders of eETH are eligible to receive Ethereum 2.0 staking rewards, Etherfi’s own loyalty points, and also points and rewards from EigenLayer, a leading Ethereum-based liquid restaking protocol. By depositing their base asset, ETH, into Etherfi and receiving eETH in return, users can leverage this token in decentralized finance to align with their goals and maximize rewards.

Mike Silagadze, CEO and co-founder of Etherfi, remarked, “Etherfi is witnessing remarkable growth, and we are both welcoming and pleased with the support from investors who contribute to Etherfi’s ongoing growth.” He further added, “This successful round of fundraising has demonstrated to the market that Etherfi is not just the first and largest liquidity restaking protocol on Ethereum but also the only protocol that guarantees redeemability, distinguishing itself from speculative one-way deposits.”

Ethan Gao, Investment Director at Hyperithm, stated, “Etherfi stands out as the top liquidity protocol based on a variety of indicators. We are confident in Etherfi’s potential to lead in the LRT sector and are excited about the prospect of exploring new opportunities in the DeFi area with them.”