Ether.fi Staked BTC (eBTC) is a liquid restaking token developed by ether.fi, designed to provide users with yield opportunities from both Bitcoin staking and restaking protocols. It allows users to deposit Bitcoin-backed assets like LBTC and WBTC to earn rewards.

Overview

eBTC functions as a liquid restaking token that represents staked and restaked Bitcoin-backed assets within the ether.fi ecosystem. Its primary purpose is to simplify the process of earning yield from multiple sources simultaneously, including native Bitcoin staking and various restaking protocols. The token is built to be compatible with several blockchain networks, including Ethereum mainnet, Base, Arbitrum, and Corn, maintaining the same contract address across these chains ^[1].

The token is backed by LBTC through a collaboration with Lombard, aiming to deliver a product that offers dual yield generation from both staking and restaking activities. Staking is facilitated through the Babylon protocol, while restaking services are integrated via platforms such as EigenLayer, Symbiotic, and Karak. This structure allows users depositing LBTC and WBTC to potentially earn yields aggregated from these different protocols. eBTC is positioned as an alternative form of collateral within the growing restaking landscape, intended to offer simplified yield optimization and expanded utility for Bitcoin holders ^{[1] [2]}.

Technology

The eBTC token operates on a technical framework that integrates multiple underlying protocols to generate yield. When users deposit supported assets, such as LBTC or WBTC, into the eBTC vault, these assets are utilized across various strategies. Staking yield is primarily derived through integration with the Babylon protocol, which focuses on Bitcoin staking. Concurrently, the deposited assets are also deployed into various restaking protocols, including EigenLayer, Symbiotic, and Karak ^[1].

This dual approach allows eBTC holders to potentially earn rewards from both native Bitcoin staking and the additional yields offered by restaking activities on Ethereum-based protocols. The system is designed to abstract the complexities of managing individual staking and restaking positions, providing users with a single liquid token that represents their underlying staked and restaked assets and accumulated rewards. The eBTC token is available and bridgeable across multiple networks, including Ethereum mainnet, Base, Arbitrum, and Corn, using a consistent contract address ^[1].

The core technical components include the BoringVault, Token, Accountant, Lens, and Teller contracts, which manage deposits, withdrawals, token representation, accounting, and data querying. The vault's operations and code are publicly available for review ^[1].

Tokenomics

The eBTC token represents a share of the underlying Bitcoin-backed assets staked and restaked within the ether.fi protocol. As of July 2025, the circulating supply of eBTC is approximately 3.4 thousand tokens, which also represents the total supply. The maximum supply is uncapped. The market capitalization is calculated based on the current price and circulating supply ^[2].

The price of eBTC is tracked across various exchanges, primarily decentralized exchanges (DEXs). Trading volume fluctuates daily, reflecting market activity. The token's value is intended to accrue the yield generated from the underlying staking and restaking activities. Historical price data shows fluctuations, including an all-time high of $112,644 in May 2025 and an all-time low of $58,794.65 in October 2024 ^[2].

Use Cases

The primary use case for eBTC is to allow holders of Bitcoin-backed assets (LBTC and WBTC) to earn yield through staking and restaking without directly managing validator infrastructure or navigating multiple restaking protocols. By depositing assets into the eBTC vault, users receive eBTC tokens, which are liquid and can be used within the broader decentralized finance (DeFi) ecosystem ^[1].

eBTC can be traded on various decentralized exchanges, including Curve (Ethereum), Uniswap V3 (Ethereum), and Balancer V2 ^[2]. The token is designed to be composable, allowing it to be integrated into other DeFi protocols for activities such as lending, borrowing, or yield farming, potentially earning additional rewards on top of the native staking and restaking yields ^[1].

Furthermore, ether.fi offers related products like Liquid vaults and a Cash card, which could potentially integrate with eBTC, allowing users to automate earnings strategies or spend their crypto assets in real-world transactions ^[3]. Participation in the eBTC ecosystem also provides access to various points programs, including those from Symbiotic, ether.fi, Lombard, and Veda, with potential for points from Karak and EigenLayer ^[1].

Security

Security is addressed through several measures, including external audits and a bug bounty program. The smart contracts associated with the eBTC vault have undergone audits by firms such as Macro and Spearbit ^{[1] [4]}.

ether.fi also maintains a bug bounty program on Immunefi to incentivize the identification and reporting of vulnerabilities within its protocols, including those related to eBTC ^{[3] [5]}. Incident response management procedures are also documented ^[6].