Ether.fi Splits weETH Token to Separate Staking From Restaking Risk

Ether.fi, one of crypto’s largest staking platforms holding roughly $3.55 billion in customer deposits, has removed restaking exposure from its main token, weETH, turning it into a plain Ethereum staking product.

New Token Handles Restaking Exposure

Users seeking additional restaking rewards must now hold a separate token, weETHs. Previously, anyone holding weETH was automatically exposed to both staking and restaking risk, even if they only wanted plain staking rewards.

Restaking allows already-staked ether to secure additional services for extra yield, but it also doubles potential penalty risk if either system fails. Ether.fi said the split gives current holders a clearer choice and simplifies the platform for new users. The company generates about $223 million in annualized fees and $51 million in annualized revenue, though only $30,000 has gone to ETHFI holders through buybacks so far.

Timing Coincides With Rewards Debate

The split arrives as Ethereum researchers, including one from the Ethereum Foundation, proposed this week ending staking rewards once half of all ether becomes staked, arguing the current system encourages excessive concentration among large custodians.

The proposal would gradually reduce rewards to zero around 60 million ether staked, up from roughly a third currently staked. Ether.fi founder Mike Silagadze criticized the proposal, warning it could push out smaller stakers and undermine staking-dependent products like his own.