Ether.fi's 40 million strategic weaving: How to connect the future context of Decentralized Finance with funds?

This move marks the transformation of ether.fi from a stake protocol provider to a leader in the Decentralized Finance ecosystem, strengthening its ecological synergy and industry leadership.

Written by: Oliver, Mars Finance

Ether.fi, a leading company in the Ethereum ecosystem, announced the launch of Ether.fi Ventures Fund I, a venture capital fund with a scale of 40 million USD, aimed at supporting entrepreneurs who dare to challenge industry boundaries and drive technological innovation. This is not just a simple capital investment, but a declaration of ether.fi's transformation from a staking protocol provider to a strategic leader in the DeFi ecosystem. The first three projects to be invested in—Resolv, Rise Chain, and Symbiotic—focus respectively on stablecoins, layer two networks, and staking infrastructure, precisely anchoring the lifeline of the DeFi ecosystem.

The Origin of the Expedition: Ether.fi's Strategic Transformation

Ether.fi has gained fame in the Ethereum ecosystem with its non-custodial staking protocol. This protocol allows users to stake Ethereum (ETH) while retaining control of their assets, earning yields through liquid staking tokens (eETH) and participating in the Decentralized Finance ecosystem. With its decentralized design and user-friendly experience, ether.fi's total locked value (TVL) reached $4.9 billion by early 2025, growing from a single staking product to a vertically integrated "DeFi Bank," generating annual revenue in the millions. However, the competition in the DeFi industry is becoming increasingly fierce, and market cycle fluctuations, capital scarcity, and the collapse of hype have exposed the vulnerabilities of the industry. Ether.fi recognizes that a single protocol's moat is insufficient to meet future challenges; ecosystem empowerment is the key to long-term success.

The launch of Ventures Fund I stems from ether.fi's profound insight into industry inflection points. The official statement points out that the current cryptocurrency market has returned from chaos to rationality, and the true signals come from those teams that quietly build infrastructure, code new economic systems, and form networks around practicality. ether.fi chose to establish the fund at this moment not only to support these "fearless founders," but also to extend its DNA—belief, execution, and fundamentals—into a broader ecosystem. By investing in the infrastructure of Decentralized Finance, such as stablecoins, scaling technologies, and stake systems, ether.fi aims to create synergy with its core staking business, reduce user participation costs, expand revenue channels, and seize the high ground of the next wave of adoption.

The fund's funding structure reflects ether.fi's financial strength and industry network. The official statement makes it clear that Ventures Fund I is an independently managed fund with external capital, indicating that it is not entirely dependent on protocol revenue. ether.fi's staking protocol generates stable cash flow through management fees and revenue sharing, with an estimated annual revenue of $4.9 billion in TVL, enough to support some of the fund's size. In addition, ether.fi closed a $50 million seed round led by North Island Ventures and Chapter One in 2023, with a portion of the proceeds likely to be used for investment activities. The fund team's industry connections – including relationships with validators, restaking ecosystems, and leading protocols – may have attracted the participation of external LPs (limited partners), similar to the co-investment model of funds such as Paradigm. While the exact source of funding was not disclosed, the $40 million size reflects ether.fi's balance of capital accumulation and external support.

The team leading the fund further strengthens its credibility. The fund consists of David Hsu (former Breed VC with experience in crypto investing), Mike Silagadze (founder of ether.fi who scaled Top Hat to 500 people), Jozef Vogel (Web3 finance expert at Aave Companies), Rok Kopp (growth strategist), and Charles Mountain (former Hivemind Capital, Focus on cross-chain strategy). The team not only has hands-on experience in building and investing, but also has demonstrated a keen sense of high-potential projects in the early stages of projects such as Monad, Ethena, and Usual. Their "builders support builders" philosophy ensures that the fund is founder-centric and invests in technology-driven, community-oriented teams.

In-depth Analysis of Three New Stars

The first batch of investment projects for Ventures Fund I—Resolv, Rise Chain, and Symbiotic—are the pioneers of ether.fi's strategic expedition, targeting the three core areas of the DeFi ecosystem: the yield of stablecoins, the scalability of blockchain, and the flexibility of staking. The following provides an in-depth analysis of each project's innovative core, market prospects, and strategic connection with ether.fi through three different perspectives and styles.

Resolv: Recreating the Yields of Stablecoins

In the financial landscape of Decentralized Finance, stablecoins serve as the link connecting trading, value storage, and payments. However, traditional stablecoins like USDT and USDC only provide price stability, resembling "sleeping assets." Resolv has redefined this role in a disruptive way by launching the "yield stablecoin" protocol. This innovation dynamically allocates the earnings from the funds pool—such as lending interest, liquidity mining rewards, or arbitrage opportunities—to stablecoin holders through smart contracts. The Resolv stablecoins held by users not only maintain a 1:1 peg to the US dollar but also generate passive income like bonds or dividend assets. The Ethereum-based decentralized architecture ensures operational transparency, with smart contracts acting as public ledgers, eliminating centralized risks and earning users' trust.

At the heart of Resolv's technology is an adaptive yield engine that algorithmically optimizes the allocation of funds, dynamically balancing between low-risk lending pools (e.g., Aave), high-yield liquidity mining (e.g., Uniswap V3), or arbitrage strategies. When the market is volatile, the engine may prefer a safe lending strategy to protect the principal; In a bull market, chase higher mining returns. This intelligent design allows ordinary users to enjoy stable income without having to delve into DeFi. The global stablecoin market has grown to more than $200 billion, and its use in cross-border payments, institutional investments, and DeFi continues to expand. Resolv's income model caters to retail and institutional demand for low-risk, high-return assets, especially in the context of low interest rates in traditional finance. However, the challenges should not be overlooked: competition with giants such as Tether requires superior execution, and regulatory uncertainty (such as the US censorship of stablecoins) can increase the cost of compliance.

Resolv's strategic ties to ether.fi are particularly strong. ether.fi's staking protocol relies on stable liquidity, while Resolv's yield stablecoin can be used as an ideal collateral asset or gas fee payment tool, reducing user participation costs. At the same time, ether.fi's liquid staking tokens (eETH) can be integrated into Resolv's pool to generate additional liquidity yields. This two-way synergy not only enhances the market competitiveness of the two, but also provides more revenue channels for ether.fi's users. Ether.fi's seed round of investment provided R&D funding for Resolv, and its industry network helped the project establish partnerships with DEXs such as Uniswap and Curve, accelerating market penetration. Resolv is not only an independent project, but also a strategic extension of the ether.fi ecosystem, jointly promoting the liquidity revolution of DeFi.

Rise Chain: Ethereum's scaling engine

Ethereum is the nerve center of Decentralized Finance, but high Gas fees and network congestion have long constrained its development. A simple transfer can cost dozens of dollars, and the costs of complex transactions are even more daunting. Rise Chain, as a Layer 2 solution for Ethereum, is committed to breaking these bottlenecks through technological innovation. Its core technology is ZK-Rollup, which uses zero-knowledge proofs to compress thousands of transactions into a compact "data package," submitting only the final result to the Ethereum mainnet. This increases transaction speeds to thousands per second and reduces Gas fees to a fraction, making it a scalability engine for Ethereum. Compared to Optimism's Optimistic Rollup, ZK-Rollup has advantages in security and finality, representing the future direction of Layer 2 technology.

The unique charm of Rise Chain lies in its modular design, which resembles a customizable blockchain toolbox. Developers can tailor functionality to the needs of their applications: DeFi protocols may prioritize ultra-low latency to support high-frequency trading, NFT marketplaces may place more emphasis on data availability to store metadata, and gaming platforms may require high throughput to handle real-time interactions. This flexibility makes Rise Chain an ideal platform for developers to migrate existing applications to layer 2 without significant code changes. The high compatibility with the Ethereum mainnet further ensures security and ecological synergy. Layer 2 networks are currently a popular track for scaling, and the TVL of Arbitrum and Optimism has both exceeded $10 billion. With the explosion of DeFi, NFT, and Web3 applications, cheap and efficient trading infrastructure will become a rigid demand, and Rise Chain's market prospects are promising.

The strategic synergy between Rise Chain and ether.fi is evident. The staking protocol of ether.fi relies on the transaction environment of the Ethereum mainnet, and high Gas fees directly increase the cost of user participation. Rise Chain's low-cost trading environment can significantly reduce these barriers, allowing more users to participate in ether.fi's staking activities. In addition, Rise Chain may become the preferred layer two deployment platform for the ether.fi protocol, enhancing its performance and user experience. The seed round investment from ether.fi provides Rise Chain with R&D funding, and its industry connections help the project establish relationships with ecosystem giants like MetaMask and Chainlink, accelerating the development of the developer community. Rise Chain is not only an investment target for ether.fi but also a strategic pillar for its ecosystem expansion, jointly promoting the performance upgrade of Ethereum.

Symbiotic: stake cross-chain hub

In the wave of proof-of-stake (PoS) blockchains, staking has become a core mechanism for users to participate in network security and earn rewards. However, traditional staking protocols, like isolated islands, are limited to a single network, limiting the flexibility and earning potential of users. Symbiotic is positioned as a "universal staking infrastructure" and seeks to become a hub connecting the blockchain universe. Through cross-chain bridges and standardized APIs, Symbiotic allows users to seamlessly stake assets across Ethereum, Cosmos, Polkadot, and emerging PoS chains. Its dynamic staking strategy gives users the ability to be an "investment manager" to adjust asset allocation according to market conditions – the bull market chases high yields, and the bear market favors a stable strategy. This flexibility is what makes Symbiotic unique in the staking market.

The governance model of Symbiotic is equally noteworthy. Protocol upgrades are decided by token holders through decentralized voting, resembling a global democratic experiment that ensures fairness and transparency. Its technical architecture relies on advanced interoperability protocols (such as IBC and Polkadot's XCM) to ensure cross-chain security through multi-signatures and zero-knowledge proofs. The global staking market has surpassed $500 billion and continues to grow with the popularity of PoS chains. Symbiotic's cross-chain solution meets the diverse yield demands of retail investors, institutions, and DAOs, and is expected to become a core node in the staking market. However, cross-chain security remains a technical challenge; recent cross-chain bridge attack incidents highlight the complexity in this field, and user education will also be key to driving adoption.

Symbiotic has the most direct connection to ether.fi. ether.fi's non-custodial staking protocol is a natural complement to Symbiotic's cross-chain infrastructure. For example, ether.fi users may stake eETH to other PoS chains through Symbiotic to obtain higher compound returns; In turn, Symbiotic's cross-chain liquidity can inject more assets into ether.fi's staking pool. This two-way collaboration not only expands the market coverage of the two, but also creates more value for users. Ether.fi provided funding and technical guidance to Symbiotic to expand its impact by partnering with networks such as Cosmos and Avalanche. Symbiotic is not only an investment project, but also a strategic ally of ether.fi to expand its staking territory and jointly build a cross-chain staking ecosystem.

Ecological Collaboration and Future Blueprint

Resolv, Rise Chain, and Symbiotic are not isolated investments, but rather components of the carefully woven ecosystem of ether.fi. Their synergies create greater value for the DeFi ecosystem. The low-cost trading environment of Rise Chain provides infrastructure support for stablecoin trading by Resolv, reducing user costs; Resolv's yield stablecoin offers stable liquidity for DeFi applications on Rise Chain; Symbiotic's cross-chain staking injects more assets into Resolv's liquidity pool and the ecosystem of Rise Chain. This multi-layered collaboration not only enhances the independent value of each project but also builds a strong network effect for the ether.fi ecosystem.

For ether.fi, Ventures Fund I is a strategic leap forward. Investing in Resolv, Rise Chain, and Symbiotic not only solidifies its leadership position in the Ethereum ecosystem, but also creates multiple values for its own business. Rise Chain lowers the transaction costs of staking protocols, Resolv and Symbiotic provide users with diversified income channels, and the success of the fund pushes ether.fi from a protocol provider to an industry bellwether. More importantly, ether.fi has established a deep binding with the invested projects through equity, token distribution, and technology integration, forming a long-term strategic alliance.

From an industry perspective, the launch of Ventures Fund I marks the transformation of DeFi from reckless growth to strategic layout. Resolv's yield stablecoin may inspire traditional financial institutions to launch similar products, Rise Chain's modular design may become the standard for layer two networks, and Symbiotic's cross-chain staking may give rise to a unified staking market. In the future, Ether.fi may expand its investment scope to decentralized identity (DID), Web3 social, or the integration of AI and blockchain, with the blockchain markets in Asia and Europe potentially being its next stop. For Resolv, Rise Chain, and Symbiotic, the upcoming challenge is to convert their technological vision into market success; product launch, user acquisition, and community building all require time and resources. However, with the funding, technical support, and industry connections from ether.fi, they are already in the best starting position.

Epilogue: Strategic Expedition for the Future of Decentralized Finance

The birth of Ether.fi Ventures Fund I marks the starting point of a strategic expedition. With a cornerstone of 40 million dollars, it ignited the spark of innovation in the DeFi ecosystem by investing in Resolv, Rise Chain, and Symbiotic. This fund represents not only ether.fi's transformation from a staking protocol to an ecosystem enabler but also a profound insight into the future of blockchain. On the DeFi stage in 2025, ether.fi uses capital as its pen and technology as its ink, writing an epic about innovation and collaboration.

Can Resolv reshape the yield logic of stablecoins? Can Rise Chain accelerate the Ethereum scaling revolution? Can Symbiotic become the hub connecting the staking universe? The answers are yet to be revealed, but this expedition is already captivating enough. Let's wait and see how ether.fi collaborates with invested projects to draw the blueprint for the future in the vast sea of Decentralized Finance.

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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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