Flare introduces flrETH: a high-yield liquid Ethereum staking token on Flare

Key highlights:

• flrETH lets users earn 7% APR on Flare while retaining liquidity, enhancing DeFi functionality.
• Developed by Dinero, flrETH employs a dual-token staking system to maximize yield potential.
• The release of flrETH deepens liquidity on Flare, coinciding with a 50% DeFi TVL increase.

Flare’s DeFi expansion adds high-yield ETH staking with flrETH

Flare has announced the launch of flrETH, a new Ethereum staking solution that combines a 7% annual yield with full liquidity, allowing users to actively engage with Flare’s DeFi offerings while maintaining ownership of their Ethereum. Developed by Dinero, flrETH is Flare’s first liquid staking token for Ethereum, representing a new way for participants to earn staking rewards and explore other DeFi opportunities within the Flare ecosystem.

Flare’s native flrETH can be created when users bridge ETH to the network, making it accessible for earning Ethereum staking rewards at a 7% APR. Users can also trade flrETH for WETH via SparkDEX, where liquidity pools are planned as part of Flare’s DeFi Emission Program. This expansion comes as Flare’s ecosystem records steady growth, with a 50% increase in total DeFi value locked (TVL) in the past quarter due to emissions of reward FLR tokens.

flrETH is underpinned by Dinero’s pxETH staking model, which employs a dual-token approach (pxETH and apxETH) to capture staking yields, typically at two to three times the rate of other staking solutions. Users with pre-bridged ETH can also stake their assets directly into flrETH using the flrETH dApp, creating flexibility for investors and enhancing liquidity across Flare’s decentralized finance offerings.

Opening doors to new DeFi products on Flare

The introduction of flrETH positions Flare to expand its product offerings, including new DeFi solutions structured around this liquid staking token. flrETH pools on SparkDEX will soon be incentivized, attracting further engagement within Flare’s DeFi ecosystem. Additionally, there are plans for integrating flrETH into Flare’s FAsset collateral system, which may open further options for users seeking to leverage their staked assets for yield generation.

As liquid staking continues to expand as the largest DeFi category by total locked value, its applications across L1 and L2 networks continue to evolve, enabling new yield opportunities and DeFi protocol integrations. With flrETH, Flare adds liquid ETH staking to its platform, broadening its DeFi ecosystem and offering users a new pathway to earning competitive yields within a secure and scalable framework.

The bottom line

Flare’s launch of flrETH brings high-yield Ethereum staking to its platform, allowing users to capture staking rewards without sacrificing liquidity. Developed by Dinero, the addition of flrETH supports a range of DeFi activities on Flare, and its dual-token system offers an attractive yield model. With flrETH, Flare not only deepens its DeFi capabilities but also sets the stage for further integration and new opportunities for yield-focused users.

But what will you do with your staked ETH? Now you can restake it, with EigenLayer crypto restaking.

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