Upgrade of ETH Yield Vault

Overview

The ether.fi Liquid ETH vault is upgrading to Veda’s latest smart contract design, the same used for Liquid USD. No action required for existing Liquid ETH vault depositors.

The upgrade gives the following improvements:

  • Ability to operate on L2s

  • Easier and quicker integrations with DeFi Protocols to maximize rewards

  • Enhanced security features

To ensure a smooth experience, the upgrade will be done in two phases. Phase 1: Starting Wednesday, June 12

The existing Liquid ETH vault will gradually transfer its DeFi positions into the new Liquid ETH vault. This will take 7-14 days.

Phase 2: Following Phase 1

  • Existing depositors in the ETH vault will not need to take any action if they wish to simply maintain their position in the vault

  • Old ETH vault depositors that wish to deposit more or partially withdraw from the vault will need to migrate to the new vault and will be prompted to do so at the time they take one of those actions. Full withdrawals do not require migration

  • All new deposits will go into the new vault

Understanding the new ITB risk monitoring

  • As part of the Liquid ETH Vault migration, the infrastructure will include a new, enhanced set of risk monitoring capabilities

  • Previously, the existing vaults were protected using a series of risk monitoring alerts across the different protocols used in the yield strategies

  • Moving forward, the Liquid ETH Vault will not only monitor risk signals but also include actionable triggers to exit positions programmatically based on specific risk conditions

  • The risk management is based on economic risk conditions evaluated block-by-block for protocols and specific positions

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