Ether.fi chooses Scroll as L2 settlement layer, announces crypto-based credit card

Share this article

The Ether.fi reset protocol has chosen Scroll as the tier 2 blockchain for settlement, paving the way for the launch of the planned credit card and lending marketplace.

Scroll, a zero-knowledge (ZK) accumulation network that went live in 2023, will handle transactions for Ether.fi’s future Cash card. The Tier 2 solution has seen its total locked-in value (TVL) rise from $556 million to $676 million since at least Aug. 5, according to DeFiLlama data.

Ether.fi CEO Mike Silagadze expressed optimism about the potential impact of the partnership, predicting that it could bring “billions in TVL” to Scroll and elevate it to a leading position in Tier 2 networks .The integration aims to allow cardholders to use crypto as collateral for purchases and automatically settle balances using native returns.

Gasless settlements over Scroll

A key advantage of using Scroll is its low transaction costs. The network’s ZK-rollup technology allows for “gas-free” transactions, meaning users will incur no fees when sending or staking assets. Current data from Scrollscan shows average gas fees per Scroll at around 0.09 gwei ($0.005), compared to the Ethereum average of 32.8 gwei.

Ether.fi has established itself as a major player in the recovery sector with $5.7 billion in TVL – a 12% increase in the last month. That growth contrasts with trends in the broader resurfacing market, where competitor EigenLayer saw a $5 billion drop in TVL as of July 30.

The redistribution sector reaches a value of 24 billion dollars

As a liquid reset protocol, Ether.fi allows users to stake Ethereum and receive eETH tokens in return. These tokens can be used on various DeFi platforms to maximize profits while also earning loyalty points and additional rewards through the Ether.fi ecosystem.

The protocol aims to improve Ethereum’s decentralization by allowing users to run their own nodes, potentially reducing the risks associated with centralized node operators. It also collaborates with other DeFi projects to increase the utility of eETH within the wider Ethereum ecosystem.

The restocking sector, which includes protocols such as Ether.fi, EigenLayer, Restake Finance and Inception, has grown to encompass approximately $24 billion in total value. These platforms allow users to leverage staked assets for additional security and rewards across multiple blockchain applications, potentially increasing the capital efficiency and security of decentralized applications.

Share this article