From Staking to Banking: ether.fi Redefines Crypto Utility
In Brief
Ether.fi, now Ethereum’s fourth-largest protocol with $12B secured, is expanding beyond staking into a crypto-native neobank, with co-founder Rok Kopp highlighting liquid restaking, AVSs, and the future of DeFi banking.
ether.fi has grown into the fourth-largest protocol on Ethereum, securing more than $12 billion in assets and 2.6 million ETH, an achievement its co-founder Rok Kopp attributes to building beyond staking into full-scale DeFi banking services. In this conversation, he shares how liquid restaking reshapes risk and rewards, why Actively Validated Services (AVSs) are key to the future, and how ether.fi aims to evolve into a crypto-native neobank.
Could you start by introducing yourself and ether.fi?
My name is Rok, and I’m one of the co-founders of ether.fi, which is a liquid restaking platform. We’re building what you could call a DeFi bank, a place where you can save, invest, and spend your crypto assets. Our goal is to bring reward-bearing assets to crypto that can also be used in real life.
We offer maximum returns on ETH, Bitcoin, USD, and we’re adding more assets. Essentially, we want to provide all the services a traditional bank would, but for crypto. My background is in Web2 startups, and I’ve been building in this space for the last three years. Today, ether.fi is the fourth-largest protocol on Ethereum, with over $12 billion in assets.
How does liquid restaking with platforms like ether.fi change the risk-reward trade-offs compared to traditional staking models?
Early on, people were nervous about staking because of perceived risks, but the truth is that those risks are extremely low. If you’re at least semi-competent, you’re unlikely to get slashed. The Ethereum Foundation has done a lot of good work to make staking secure, with upgrades like Pectra.
With restaking, there isn’t much more risk, but the rewards are higher, around 50 basis points more on average compared to regular staking. Plus, our liquidity is as good as, if not better than, most liquid staking tokens.
What strategies are evolving for yield optimization in DeFi with tokenized restaked ETH like eETH?
There are plenty of opportunities. One of our key products is ether.fi Liquid, which is essentially tokenized, managed DeFi strategies. Users deposit assets, and then a vault and strategy manager optimizes the position.
The returns vary, ETH has been around 8%, USD is currently at 12–13%, while BTC is lower, just a couple of percent. The idea is to make it really easy for people to earn more on their assets. We focus mainly on ETH, BTC, and USD, and recently launched a Hype Vault, which has been very popular.
What infrastructure and risk management challenges arise when integrating restaked assets into more than 400 DeFi protocols?
There are a lot. We rely heavily on providers, especially Oracles, and we put significant effort into integrating our assets seamlessly across protocols. Our strategy has been “say yes to everything.” We wanted ether.fi to be ubiquitous in DeFi.
That meant ensuring that wherever people go in DeFi, they can use our assets. We worked hard to make sure that not having ether.fi-supported tokens would never be a barrier.
Ether.fi now dominates restaking with 2.6 million ETH. What drove this growth?
We always knew that staking on its own wasn’t enough. From the start, our vision was to build more products on top of staking. That’s why we have liquid products, cash products, and soon trade products.
For example, soon you’ll be able to trade perps, stocks, and more directly on ether.fi. Think of it like a banking app, Robinhood in the U.S. or Revolut in Europe, where you can manage everything in one place. Expanding beyond staking into real utility was key, and our deep integration with DeFi helped accelerate adoption.
How could services like ether.fi reshape DeFi staking into broader consumer finance?
I think it will become standard. Just like banks offer savings accounts with returns, crypto banks will do the same. Looking ahead, I believe most finance will run on crypto rails, but consumers won’t even notice.
The crypto layer will be abstracted away, and people will just use simple apps. That’s why building services that mirror everyday financial tools is so important for adoption and ecosystem growth.
What about regulatory uncertainties? How do they impact liquid staking?
Honestly, I don’t think there are many left. The SEC recently clarified that liquid staking tokens are not securities, which was the main concern. That’s now officially resolved, so I feel very good about where things stand.
Looking forward, I expect to see more digital asset trusts (DATs) and even ETFs moving into DeFi in the near future.
How do protocols manage systemic risks like slashing, smart contract failures, or liquidity crunches?
It’s complex, but our engineering team handles it really well. We monitor a range of KPIs to make sure the system stays healthy, and we act quickly if anything goes off balance.
We audit heavily, and we stay on top of node operators to make sure they perform correctly. Liquidity crunches can happen, but the key is solving them fast. We’ve always processed withdrawals one-to-one, and we’re an overcollateralized protocol.
The biggest risk is smart contract failure, so we consistently audit our contracts to ensure security.
What technical improvements could expand the appeal of restaking?
The biggest driver will be AVSs (Actively Validated Services) paying out real rewards. Right now, EigenLayer is subsidizing much of the ecosystem. However, with new projects like CAP Labs launching soon, AVSs will start incentivizing restaked ETH directly.
That’s when growth will really accelerate—when users see clear value from AVSs.
How might tokenization, such as eBTC or eUSD, affect cross-asset restaking strategies?
Each asset comes with its own challenges. Symbiotic has been great at enabling cross-asset restaking, but we’ve mostly stayed in our lane. We work with EigenLayer and Symbiotic for ETH, and with Babylon and Lombard for BTC. USD isn’t restaked yet.
Right now, there’s actually more supply of restaking than demand, so the market still needs time to balance.
What ecosystem developments could disrupt or elevate the restaking model?
On the technical side, Pectra was a strong upgrade. But at the ecosystem level, again, it comes back to AVSs. For restaking to thrive, AVSs need to create real utility and value. That’s what will ultimately prove out the model.
How do you see DeFi evolving to standardize restaking protocols?
I’d argue we’re already close to standardization. Wrapped ETH is one of the most used assets in DeFi.
The real differentiator is integrity, processing withdrawals reliably, maintaining liquidity, and doing exactly what you promise. Sadly, just doing what you say puts you in the top 5% of crypto companies. We’ve always held ourselves to that high standard, and it’s been a big part of our success.
Could you share ether.fi’s roadmap for the coming year?
Absolutely. Our vision is to do everything a traditional bank does, but for crypto. We launched ether.fi Cash a few months ago, and it’s been a huge success, 6,000 cards are used daily, and nearly 100,000 people have signed up. The growth has exceeded our expectations.
Next up is ether.fi Trade, which will let users trade perps, stocks, and more directly in the app. The idea is simple: whatever a bank offers, ether.fi should offer as well.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
