ETHZilla Shatters DeFi Norms with $100M EtherFi Restaking Power Move
ETHZilla just dropped a seismic bet on restaking—plowing $100 million into EtherFi and rewriting DeFi's playbook overnight.
The Mechanics Behind the Move
This isn't just yield farming with extra steps. ETHZilla's vault is leveraging EigenLayer's restaking primitive to stack rewards on already-staked ETH—effectively double-dipping on Ethereum's security while chasing alpha that'd make traditional finance blush.
Why This Changes Everything
Restaking morphs idle collateral into productive assets—ETHZilla's play signals institutional-grade conviction in DeFi's next infrastructure war. The move pressures legacy yield products still stuck benchmarking against treasury bills.
Risks? What Risks?
Smart contract vulnerabilities loom, and slashing conditions could turn this high-stakes game into a bloodbath. But hey—if you want bond-like returns, maybe stick to your banker's 2% APY special.
ETHZilla didn't just enter the restaking arena—it bought the entire stadium. Now watch every other fund scramble to explain why they didn't think of it first.
ETHZilla’s foray into liquid restaking
Per the release, ETHZilla is deploying the funds into EtherFi’s liquid restaking protocol to generate higher yields while reinforcing Ethereum’s network security. The partnership represents ETHZilla’s first engagement with decentralized finance protocols, with Executive Chairman McAndrew Rudisill framing it as both a step toward innovation and a measured exercise in prudent asset stewardship.
The company began accumulating Ethereum steadily earlier this year, with total holdings reaching 102,246 ETH at an average acquisition price of $3,948.72, representing roughly $456 million.
This positions the company with a substantial unrealized gain on its core treasury asset. In addition to its crypto holdings, the ETHZilla maintains a war chest of roughly $221 million in USD cash equivalents, providing significant liquidity for future maneuvers or to cover operational expenses without needing to liquidate its ETH position.
A review of the firm’s weekly capital summary captured in the release reveals a period of intense accumulation that has now seemingly paused. After buying 7,600 ETH in the week ending August 24, the company’s ETH acquisition dropped to zero last week, suggesting it had reached its initial accumulation target and was preparing to shift from buying mode to deploying mode.
