Stakers deposit funds into Ether.fi and receive a return on investment in the form of staking rewards (supply-side fees).

Ether.fi is a non-custodial staking protocol built on Ethereum and other blockchains. Ether.fi was founded by Mike Silagadze and launched in 2023.

Ether.fi team & investors own and govern the protocol. They currently take a cut of the total staking rewards earned by the protocol (revenue). Ether.fi’s investors include North Island Ventures, Chapter One, Node Capital, and Arthur Hayes.

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# Ether.fi Capital deployed Methodology

## 1. Overview

Capital deployed measures the value of user deposits allocated into investments by Ether.fi. The total assets managed across the Liquid and Stake products are reflected by this metric, which correlates with the protocol's capacity to generate yield and revenue. User deposits are tracked across Ethereum, Bitcoin, and USD-denominated vaults, as well as specialized yield-bearing assets.

## 2. Data sources

- **Blockchain events**: State reads of total supply, exchange rates, and asset configurations from Liquid vault and accountant contracts, oracle-reported category TVL events, and total supply and rate state reads from eBTC, BeHYPE, and LiquidHYPE contracts, covering Ethereum and HyperEVM
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Liquid vault balance tracking

- **Purpose**: Calculate the raw asset balances held within the Liquid vaults on Ethereum
- **Logic**: State reads from vault and accountant contracts are parsed to extract total supply, exchange rates, and decimals. For each active vault, the raw asset balance is calculated by dividing the total supply by the accountant decimal precision, multiplying by the exchange rate divided by the accountant decimal precision, and scaling the result by the base asset decimal precision. Vaults are filtered to only include data after their respective deployment timestamps
- **Key fields**: `total_supply`, `exchange_rate`, `decimals`, `base_decimals`

### Component B: Vault group aggregation and adjustments

- **Purpose**: Aggregate vault balances by group and apply adjustments to prevent double-counting
- **Logic**: Vault balances are grouped into Ethereum, Bitcoin, and USD categories. Adjustments are applied to the Ethereum and Bitcoin groups using oracle-reported category TVL and eBTC total supply. Before a designated cutoff timestamp, the total supply of eBTC is subtracted from the Bitcoin group, and the oracle-reported TVL for the `Liquid-weth` category is subtracted from the Ethereum group. After the cutoff timestamp, the oracle-reported TVL for the `Liquid-vault-wbtc` category is subtracted from the Bitcoin group, and the TVL for the `Liquid-vault-weth` category is subtracted from the Ethereum group. Adjusted group balances are prevented from falling below zero
- **Key fields**: `weth_adjustment`, `wbtc_adjustment`, `total_supply`

### Component C: Asset distribution and add-backs

- **Purpose**: Distribute the adjusted group balances to their respective underlying assets and add back the adjusted amounts
- **Logic**: The adjusted Ethereum group balance is allocated to `ether.fi weETH`. The adjusted Bitcoin group balance is split equally (50/50) between `eBTC` and `WBTC`. The adjusted USD group balance is allocated to `USDC`. The subtracted WETH and WBTC adjustments are then added back as separate allocations to `WETH` and `WBTC` respectively, ensuring all underlying collateral is fully accounted for without duplication
- **Key fields**: `asset_address`, `amount`

### Component D: HyperEVM HYPE supply tracking

- **Purpose**: Capture capital deployed in HYPE-related yield strategies on HyperEVM
- **Logic**: Total supply state reads are collected for LiquidHYPE and BeHYPE. The BeHYPE supply is multiplied by the BeHYPE-to-HYPE exchange rate (normalized by decimal precision) to determine its HYPE-equivalent value. The LiquidHYPE supply and the converted BeHYPE supply are summed to calculate the total capital deployed in HYPE strategies, which is allocated to the `WHYPE` asset
- **Key fields**: `total_supply`, `behype_to_hype_rate`

### Component E: USD conversion and final aggregation

- **Purpose**: Normalize all capital deployed values to USD and aggregate them
- **Logic**: All calculated asset amounts are normalized by their respective decimal precisions. These normalized amounts are multiplied by end-of-day asset prices to determine the USD value of capital deployed. The daily values are aggregated by chain, product, and asset, with missing days filled with zeros to ensure a continuous time series
- **Key fields**: `capital_deployed`, `price_usd`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of capital allocated into investments by an asset manager.

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Capital deployed

Capital deployed

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