ETHZilla leans into sticky restaking with Ether.fi and Puffer

ETHZilla plans to deploy $100 million in ETH to Ether.fi as part of its foray into DeFi, aiming to split investments across various liquid (re)staking providers. Simultaneously, around $47 million will be allocated to Puffer. The strategy marks a significant move for ETHZilla, which holds the fifth largest ETH treasury among Digital Asset Treasuries (DATs). By attracting institutional capital, Ether.fi's founder, Mike Silagadze, emphasized the value of long-standing investments over transient, mercenary flows. EthZilla's capital structure allows it to pursue these strategies while maintaining favorable public company optics, having recently announced a $350 million convertible debenture investment. Furthermore, it is expected that Puffer will generate additional yields from appchain revenues, potentially offering pufETH holders a share in MEV fees. If successful, ETHZilla’s approach could demonstrate that institutional restaking might provide greater benefits than traditional ETFs, even alongside staking yields.

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