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<h3>Fireline Report</h3>
<p>ETHFI is a decentralized staking protocol in the Ethereum ecosystem. The DAO has proposed to use $50 million to buy back ETHFI. The total buyback amount in the DeFi sector has exceeded $1.4 billion, and the current price still has room to fall below the buyback limit of $3.</p>
<h3>Trading Guide</h3>
<p>Event-driven, pay attention to the $2.3 support level before the repurchase plan is implemented; if it falls below this level, a short-term retreat is necessary. The repurchase progress and fund deployment are the main risk points.</p>
<p style="margin-top: 20px; text-align: left; opacity: 0.4; padding: 0 42px"><small>Updated at 11-01 15:24</small><br><small>AI-generated summary, not investment advice</small></p></div>

<h1>ETHFI&#39;s $50 million buyback proposal and an overview of the 2025 DeFi buyback wave.</h1><h2> TL;DR</h2><ul><li> On October 30, the ether.fi community launched a proposal to buy back <strong>up to $50 million</strong> worth of ETHFI tokens, with a trigger price of <strong>less than $3</strong> . The funds will come from protocol revenue and treasury balances.</li><li> In 2025, <strong>over $1.4 billion</strong> worth of DeFi token buybacks were actually executed, with leading projects such as Hyperliquid, Raydium, and Jupiter contributing more than half of the revenue.</li><li> Community sentiment is generally bullish, believing that buybacks reflect the value of &quot;real income,&quot; while technical indicators show that ETHFI has found initial support around $0.93.</li></ul><hr /><h2> Core Analysis</h2><h3> 1. Details of the ETHFI buyback proposal</h3><ul><li> <strong>The proposal was released on</strong> October 30, 2025, on the ether.fi governance forum, and a 4-day Snapshot pre-voting period was opened simultaneously.</li><li> <strong>Funding cap</strong> : US$50 million, controlled by the foundation; two buybacks totaling approximately US$7.5 million have been executed previously.</li><li> <strong>Triggering conditions</strong> : Buy back in batches on DEX when the market price <strong>is below $3</strong> ; the closing price on October 31 was $0.93–$0.96, so the conditions have been met.</li><li> <strong>Transparency mechanism</strong> : All transactions are executed on the chain and made public on the Dune dashboard.</li><li> <strong>Voting status</strong> : Voting is in progress as of October 31. Community support is high, and the final results are expected to be released on November 4.</li><li> <strong>Revenue Support</strong> : DeFi Llama&#39;s annualized revenue ranges from $70 million to $116 million, with monthly revenue exceeding $8 million, sufficient to cover buyback budgets <a href="https://defillama.com/protocol/ether.fi">.</a></li></ul><p> The official forum post details the execution rules and funding sources. <a href="https://governance.ether.fi/t/ether-fi-dao-proposal-treasury-deployment-for-ethfi-buy-back-program/3178">ether.fi</a></p><h3> 2. The DeFi buyback boom in 2025 (&gt; $1.4 billion)</h3><table><thead><tr><th> Project (Token)</th><th> Repurchase amount (2025 YTD)</th><th> First announcement time</th><th> Remark</th></tr></thead><tbody><tr><td> Hyperliquid (HYPE)</td><td> $645 million</td><td> 2025-01</td><td> A sustained monthly average of $65 million</td></tr><tr><td> Raydium (RAY)</td><td> US$100 million</td><td> 2025-02</td><td> Buy-back &amp; burn model</td></tr><tr><td> Pump.fun (PUMP)</td><td> $138 million</td><td> 2025-07</td><td> 100% income day buyback</td></tr><tr><td> SKY (Maker rebrand)</td><td> $78.8 million</td><td> 2025-02</td><td> Automatic repurchase of surplus</td></tr><tr><td> Jupiter (JUP)</td><td> $57.8 million</td><td> 2025-02</td><td> 3-year lock-up period</td></tr><tr><td> Ethena (ENA)</td><td> US$40.7 million*</td><td> 2025-07</td><td> The 360 million plan will be implemented in phases.</td></tr><tr><td> GMX</td><td> US$20.9 million</td><td> continued</td><td> 12.9% of the circulating shares have been repurchased.</td></tr><tr><td> Aave (AAVE)</td><td> $23.6 million</td><td> 2025-04</td><td> $1 million per week</td></tr><tr><td> Aerodrome (AERO)</td><td> US$17.4 million</td><td> 2025-01</td><td> Public Fund Implementation</td></tr><tr><td> Others (dYdX, Orca, etc.)</td><td> US$12 million</td><td> ——</td><td> ——</td></tr></tbody></table><p> *Only the executed portion is counted.<br /> Cumulative executions have reached approximately <strong>$1.4 billion</strong> , with DeFi accounting for about 80%. If ETHFI&#39;s $50 million grant is approved, it will push the total DeFi amount to nearly $1.5 billion. Statistics are sourced from a CoinGecko research report and The <a href="https://www.theblock.co/post/377106/ether-fi-dao-proposes-50-million-ethfi-buyback-as-defis-repurchase-wave-tops-1-4-billion">Block</a> <a href="https://www.coingecko.com/research/publications/token-buybacks">&#39;s</a> October 31st report.</p><h3> 3. Social Emotions and Topic Context</h3><ul><li> <strong>Mainstream opinion</strong> : Key opinion leaders (KOLs) believe ETHFI&#39;s buyback is &quot;genuine revenue-driven,&quot; with a potential upside of 3.3 times to $3. <a href="https://x.com/dcfgod/status/1984025351576809976">(x.com)</a></li><li> <strong>Bullish arguments</strong> :<ol><li> The agreement generates annualized revenue exceeding $100 million, sustainably supporting buybacks.</li><li> TVL remains stable around $10 billion, with strong fundamentals;</li><li> It aligns with projects like Aave and Hyperliquid, demonstrating mature financial management.</li></ol></li><li> <strong>A few concerns</strong> : Academics worry that buybacks will only provide short-term stability, and the long-term impact will still depend on income fluctuations and market beta.</li><li> <strong>Engagement</strong> : The number of interactions with key posts (154 likes, 20 shares) indicates high community attention, but it is still a discussion within the &quot;insider&quot; circle.</li></ul><h3> 4. Technical Analysis (October 25-31)</h3><table><thead><tr><th> index</th><th> numerical values</th><th> Interpretation</th></tr></thead><tbody><tr><td> closing price range</td><td> $0.93–$0.98</td><td> Maintaining low-level fluctuations</td></tr><tr><td> RSI(14)</td><td> 32.8</td><td> Approaching oversold levels, the probability of a rebound increases.</td></tr><tr><td> MACD</td><td> Negative bar line continuation</td><td> The momentum is still bearish.</td></tr><tr><td> 7-day EMA / 30-day SMA</td><td> $1.00 / $1.30</td><td> Both sides exerting upward pressure create strong resistance.</td></tr><tr><td> Support/Resistance</td><td> $0.93 / $1.00</td><td> $1 is the confirmation level for the reversal.</td></tr></tbody></table><p> The price stopped falling on the day of the announcement (October 28th), but there was no significant rebound in trading volume, indicating that the news provided psychological support rather than a direct catalyst. <a href="https://www.bitget.com/news/detail/12560605040347">(bitget</a> <a href="https://finance.yahoo.com/news/ether-fi-joins-token-buyback-121824594.html">yahoo)</a></p><hr /><h2> in conclusion</h2><ol><li> <strong>Short-term impact</strong> : If the proposal is passed, the $50 million buyback could provide solid buying support around $0.93. With the RSI oversold and the buyback providing a floor, the price is expected to challenge the $1 resistance level.</li><li> <strong>Mid-term value</strong> : Based on an annualized revenue of $100 million, $50 million only accounts for about 50% of the annual cash flow, so the funding pressure is manageable and buybacks and growth can go hand in hand.</li><li> <strong>Industry trends</strong> : In 2025, the total amount of DeFi buybacks exceeded $1.4 billion, proving that &quot;real income + buybacks&quot; is replacing &quot;emission subsidies&quot; as the mainstream paradigm for value capture; ETHFI is a newly emerging typical example.</li><li> <strong>Risk warning</strong> : The effectiveness of the buyback ultimately depends on the protocol&#39;s continued profitability; if ETH staking yields or market sentiment weaken, buying support may be difficult to maintain in the long term.</li></ol>
