The Ether.fi community has just approved a proposal to use up to $50 million from its treasury to buy back ETHFI Token when the market price falls below $3 — a move XEM as a new strategy to support liquidation and Token value amid the volatile DeFi market.
According to the governance proposal published on October 31, the Ether.fi Foundation will actively buy back ETHFI on the open market whenever the spot price drops below $3. At the time, ETHFI was trading around $0.93, down more than 89% from its 2024 peak.
This move makes Ether.fi one of the next major DeFi protocols to adopt the “buyback” model – a familiar strategy in traditional finance, now used by many blockchain projects to maintain investor confidence and stabilize Token prices. However, the difference with Ether.fi is that it only triggers buybacks when the price falls below a specific threshold, instead of applying it on a cycle or fixed time like many other protocols.
Ether.fi Buyback Strategy: Tied to the Protocol's Real-Life Performance
Under the proposal, the program would take effect immediately upon approval by the DAO, and continue until one of three conditions occurs: the $50 million cap is reached, the fund decides to end it, or there is a new vote to change the policy.
Ether.fi emphasizes that the buyback will increase incrementally with the protocol's revenue, ensuring the efficient use of surplus profits to bolster market confidence and reduce the number of Token in circulation. All transactions will be recorded transparently on- chain and updated via the project's Dune Analytics dashboard.
This is Ether.fi's third buyback program, following two similar campaigns in Proposals #8 and #10, aimed at supporting liquidation and stabilizing the Token market.
Ether.fi is a non-custodial reStaking protocol on the Ethereum platform, allowing users to Staking ETH and receive tradable Token , while still generating returns both within and outside the Staking ecosystem.
