Flare Staked EtherPrice

(FLRETH)

Flare Staked Ether (flrETH) is a liquid staking token native to the Flare Network. It represents Ethereum that has been staked to earn rewards but exists as a token on the Flare blockchain. This allows users to participate in the Flare ecosystem and utilize their assets in decentralized applications while simultaneously accruing Ethereum staking rewards. It was developed in collaboration with Dinero, utilizing their specialized staking architecture.

flrETH utilizes a dual-token model designed to maximize returns. While standard liquid staking tokens distribute rewards across all participants, flrETH leverages a model where staking rewards and MEV (Maximal Extractable Value) tips from a larger pool are concentrated into an autocompounding vault. By tapping into this concentrated reward structure, flrETH is able to capture a larger share of the staking yield for its holders.

flrETH is categorized as an index token. Unlike rebasing tokens, where the number of tokens in your wallet increases over time, your flrETH balance remains constant. Instead, the value of each flrETH token increases relative to ETH as staking rewards accrue. When you eventually unstake or swap the asset, each token represents a larger amount of the underlying ETH than when it was first minted.

Users can obtain flrETH through two main methods. The first is via the official flrETH portal, which allows for bridging and staking ETH from the Ethereum mainnet to the Flare Network in a single process. Alternatively, users can acquire flrETH by swapping existing assets, such as Wrapped Flare or stablecoins, on Flare-native decentralized exchanges or supported global platforms like LBank.

flrETH offers multiple utility options beyond passive holding. Users can provide liquidity in trading pairs on decentralized exchanges to earn transaction fees and additional network incentives. Furthermore, flrETH is designed to act as a collateral asset within the Flare system. This enables users to participate in minting protocols for other assets while continuing to earn their underlying Ethereum staking rewards, effectively stacking multiple layers of utility.

Security for flrETH is managed through rigorous audits of its underlying protocols by firms such as Halborn and Spearbit, while the Flare Network itself is audited by Coinspect and Zellic. However, as with any bridged asset, users should be aware of bridge risk related to the cross-chain infrastructure. There is also standard smart contract risk, which is inherent to all decentralized finance applications and protocols.