Ether.fi, the Ethereum liquid staking protocol, has announced a plan to deliver approximately $3 billion to the ETHGas market. All in the next three years. In practice, the idea is to use approximately 2.8 million staked ETH managed by Ether.fi.
Ether.fi and USD 3 billion in ETH
The entire process on which ETHGas is based – the sale of block space commitments – allows validators to “capture much more MEV (maximum extractable value), which results in a significant increase in profits for ETH validators/stakers,” Lepsoe previously explained.
TradFi, but in the blockchain version
Liquidity commitments essentially act as a supply that buyers such as traders, applications and institutions can purchase in advance to guarantee execution, hedge gas costs or other uses. Therefore, it resembles a regular futures market (such as for e.g. oil).
Every significant commodity market in history has moved from the spot market to the futures market. Ether.fi’s involvement gives us access to the validators that make this marketplace a reality, and with it the foundation for Ethereum that can act as a settlement layer for global institutional capital
– Lepsoe concluded.
Enterprises and developers building on Ethereum gain something they’ve never had before: the ability to design applications with guaranteed execution schedules and predictable transaction costs. This changes what is possible to build, supporting the scaling of tokenization on Wall Street and the use of Ethereum in consumer applications, where transaction costs such as electricity become an “invisible” cost to the consumer
– he added.
ETHGas is backed by investors including Polychain Capital, Stake Capital, and Amber Group, and has raised a total of $17 million in funding to date. Earlier this year, it launched its native governance token, GWEI, which currently has a market capitalization of around $120 million.
