Ether.fi promises to serve as the active verification service provider (AVS) for Omni Network in the future.

The top-ranked TVL liquidity re-collateralization protocol Ether.fi announced its collaboration with Omni Network, committing to provide $600 million worth of ETH to the latter as nodes to secure the network after it opens up external projects to EigenLayer. It is expected that more new teams will seek support for LRD projects in the future.

Ether.fi to Support Omni Network

Ether.fi as an Active Validation Service Provider for Omni Network

Having just secured a $27 million investment last month, the liquidity re-collateralization protocol Ether.fi announced yesterday that it will pledge ETH to maintain the network consensus security of Omni Network after the launch of EigenLayer Phase 3 products.

In the future, nodes operated by Ether.fi will serve as actively validated services (AVS) for Omni Network, using the pledged ETH as collateral to operate nodes on the Omni Network to receive network rewards.

Providing $600 Million in ETH

In this collaboration, Ether.fi stated that it will use the equivalent of $600 million in ETH to operate Omni Network nodes, which is roughly one-third of the current assets on the protocol.

What is Omni Network?

Omni Network is a decentralized network designed with parallel consensus to provide high performance and offers fast communication across Rollups. The project has previously raised $18 million in funding.

Ether.fi Likely to Introduce Tokens Soon

On the other hand, today the Ether.fi team also revealed further token distribution plans. Increasing the accumulated amount of eETH in the protocol before 3/15 will increase the community distribution ratio of the tokens, aiming to maximize the marketing value of the tokens.

For every 50,000 eETH staked in the protocol, the token community distribution will increase by 0.25%, up to a maximum increase of 2% in total distribution, distributed to new and existing stakers.

More LRD Collaboration Cases to Come in the Future

As EigenLayer continues to develop and advance to the third stage, external new projects will be able to build on EigenLayer, seeking support from AVS to reduce project cold start barriers.

The largest AVS currently undoubtedly includes liquidity re-collateralization projects such as Ether.fi, Puffer Finance, Kelp DAO, etc., which is expected to see more emerging teams actively reaching out to LRD projects.

It is even possible for multiple projects to compete for support, for example, using the scale of rewards distributed to Ether.fi as a measure of cooperation, leading to another wave of rewards for stakers. Looking at it in the long term, the biggest winner of this collaboration is Omni Network, which has taken an early slice of the pie.

On the other hand, since Ether.fi's governance module has not been rolled out, this collaboration is solely determined by the team, impacting the interests of eETH holders. In the future, it should move towards a more robust governance process.