Summary
Aethir, as a leading project in the field of decentralized cloud computing, has built the world's largest decentralized GPU infrastructure ecosystem through its innovative GPU-as-a-Service model. This report provides an in-depth analysis of Aethir's ATH staking mechanism and its core components, focusing on the supportive role of EigenLayer ATH Vault for the Aethir ecosystem. The report assesses the operational methods, reward structures, and the impact of EigenLayer collaboration on Aethir's network expansion, revenue growth, and community participation, based on information from Aethir's official website and related sources. The analysis indicates that Aethir, through its integration with EigenLayer, has not only optimized the onboarding process for power providers but also significantly enhanced user participation and ecosystem revenue potential through the liquid staking token eATH.
1. Overview of Aethir project
Aethir is a Web3 project focused on decentralized cloud computing, dedicated to providing scalable, cost-effective GPU computing resources for AI, gaming, and Web3 applications. Since the Token Generation Event (TGE) in June 2024, Aethir has established partnerships with over 150 partners worldwide, deployed over 397,000 GPU containers across 93 locations, and achieved annual revenue exceeding $113 million. Aethir's decentralized physical infrastructure network (DePIN) is driven by its native token ATH, widely used for payments, staking, and rewards distribution.
Aethir's core advantage lies in its high network utilization (70%, far exceeding other DePIN projects like Akash's 10-25%) and its ability to support enterprise-grade AI and gaming workloads. By collaborating with leading blockchain projects such as EigenLayer, Solana, and Avalanche, Aethir is reshaping the landscape of decentralized cloud computing.
2. Analysis of ATH staking mechanism
Aethir's ATH staking mechanism is the pillar of its ecosystem, supporting network stability and power expansion through incentivizing user participation in staking. The following is a detailed analysis of its staking mechanism:
1. EigenLayer ATH Vault staking mechanism
- Operation method:
- Users can pre-deposit ATH tokens into the EigenLayer ATH Vault through Aethir's staking platform (user.aethir.com/stake/eigenlayer) to receive an equivalent amount of EigenATH (eATH) tokens at a 1:1 exchange rate.
- The staked ATH must be locked for one year (until June 13, 2026), with an additional 30-day withdrawal period after unlocking, during which no rewards are generated. This design ensures long-term network stability and security, consistent with EigenLayer's interactive fork security model.
- eATH, as a liquid staking token, allows users to retain liquidity during staking and potentially be used further in DeFi applications, enhancing the flexibility of staking.
- Reward mechanism:
- Staking rewards come from service fees paid by cloud hosts, which are distributed proportionally to eATH holders. Rewards are automatically reinvested to increase the value of eATH and distributed regularly.
- Reward yield is linked to pool utilization; when utilization ≤ 70%, rewards are calculated proportionally, with higher utilization leading to higher rewards.
- Rewards start accumulating after the protocol activation on July 13, 2025, with no rewards generated prior. To celebrate the TGE anniversary and EigenLayer deployment, Aethir launched a 10-week triple reward campaign, with 3 million ATH rewarded weekly for each pool (AI and Gaming), significantly enhancing user earnings.
- Users can estimate the annualized return rate through the upcoming APR calculator, based on staking activity and reward distribution.
- Limitations and risks:
- Each staking pool has a maximum deposit limit set by the Aethir Foundation.
- When pool utilization exceeds 85%, the withdrawal function will be disabled to ensure network stability.
- The design of the lock-up period and withdrawal period may pose a limitation for users with short-term liquidity needs, but it helps stabilize the network in the long run.
2. Checker Node repurchase plan
- Mechanism overview:
- Aethir allows node holders to sell their NFT licenses to the Aethir Foundation in exchange for eATH tokens through the Checker Node repurchase plan (checkerbb.aethir.com). The repurchased nodes are operated by Aethir, continuing to serve network stability.
- The repurchase price fluctuates based on market conditions and repurchase rates, with early participants receiving additional rewards. eATH holders can earn ATH rewards from cloud host service fees during the one-year lock-up period, and redeem both principal and rewards after the lock-up period ends.
- Significance:
- The program incentivizes community members to support the onboarding of new power providers, enhancing Aethir's DePIN ecosystem.
- By converting Checker Nodes to eATH, Aethir provides users with additional income avenues while optimizing network resource allocation.
3. Gaming and AI staking pools
- Mechanism overview:
- In addition to EigenLayer ATH Vault, Aethir also offers two staking pools for Gaming and AI. After staking ATH, users receive veATH and stATH tokens, with stATH usable on Aethir's ecosystem partners' platforms for additional rewards.
- Lock-up periods range from one week to four years, providing high flexibility. Rewards can be claimed weekly, but the principal must be redeemed after the lock-up period ends.
- The Gaming pool collaborates with gaming partners (e.g., CARV protocol) to provide additional rewards such as veCARV tokens; the AI pool collaborates with AI projects (e.g., TensorOpera) to offer related token rewards.
- Advantages:
- Provide diverse staking options to meet the needs of different users.
- The liquidity of stATH provides wide application scenarios within the Aethir ecosystem, further incentivizing user participation.
4. Economic incentives of the staking mechanism
- High yield: The APR of Aethir network ranges from 200% to 400%, significantly higher than other DePIN projects, attracting a large number of stakers. As of May 31, 2025, EigenLayer ATH Vault has staked over 813 million ATH (accounting for 8.9% of circulating supply).
- Community-driven: The staking mechanism enhances community participation through reward distribution and ecosystem collaborations (e.g., EcoDrops). As of 2025, a total of 160 million ATH has been staked, showing strong community support for Aethir's vision.
3. The extent to which EigenLayer ATH Vault supports Aethir
The launch of EigenLayer ATH Vault is a key milestone in the development of the Aethir ecosystem, integrating with EigenLayer's Actively Validated Services (AVS) model to bring multifaceted support to Aethir. The following is a specific analysis:
1. Optimize the onboarding process for power providers
- Role of AVS model:
- EigenLayer's AVS model allows cloud hosts to borrow staked ATH to join Aethir's decentralized computing network, lowering the entry barrier for new power providers (especially non-Web3 native providers).
- By providing necessary ATH staking through retail stakers, Aethir simplifies the onboarding process for cloud hosts, addressing regulatory and complexity barriers, especially for public companies constrained by cryptocurrency regulations.
- Impact:
- Aethir's network utilization is as high as 70%, far exceeding other DePIN projects. The integration with EigenLayer further attracts high-quality power providers to meet Aethir's 120+ enterprise clients' needs in AI, gaming, and Web3.
- Through Aethir New Horizons program, the onboarding of new cloud hosts has driven growth in power supply, enhancing Aethir's ability to serve enterprise-grade workloads.
2. Enhance user participation and income potential
- Liquidity of eATH:
- eATH, as a liquid staking token, allows users to retain liquidity during staking and potentially earn additional rewards in DeFi applications. This design significantly enhances user engagement in staking.
- As of May 31, 2025, EigenLayer ATH Vault has attracted 813 million ATH staked, accounting for 8.9% of circulating supply, reflecting the community's strong interest in eATH.
- Attractiveness of the reward mechanism:
- eATH holders can receive a share of cloud host service fees and potential EIGEN token rewards, enhancing the income potential of staking.
- Aethir's triple reward campaign (3 million ATH for each pool weekly) further incentivizes user participation, expected to drive more ATH locking and reduce circulating supply.
3. Promote ecosystem revenue growth
- Revenue sharing:
- Aethir has brought its $113 million annual decentralized AI and gaming GPU cloud revenue into the EigenLayer ecosystem, creating value for stakeholders on both sides through the AVS model.
- The share of cloud host service fees is directly distributed to eATH holders, enhancing the sustainability of the Aethir ecosystem while providing substantial income to EigenLayer.
- Synergy effects of Checker Node repurchases:
- The Checker Node repurchase plan incentivizes users to support the onboarding of new power providers through eATH, indirectly increasing Aethir's power supply and service revenue.
- Nodes that are repurchased are operated by Aethir, ensuring network stability while providing continuous ATH rewards to eATH holders.
4. Enhance decentralization and network security
- EigenLayer's re-staking mechanism:
- EigenLayer allows ATH stakers to support multiple protocols, enhancing the decentralization and security of the network. Aethir leverages this mechanism to ensure the stability and scalability of its power network.
- By integrating EigenLayer's interactive fork security model, Aethir reduces the risk of malicious actions by power providers, enhancing enterprise clients' trust in the network.
- Attractiveness to non-Web3 native providers:
- EigenLayer's AVS model attracts more non-Web3 native power providers to join the Aethir network by lowering entry barriers, further decentralizing its GPU infrastructure.
5. Ecosystem synergy effects
- Integration with over 150 partners:
- Aethir's ecosystem encompasses over 150 partners in AI, gaming, and Web3 fields, including TensorOpera, MetaGravity, Solana, and Avalanche. EigenLayer ATH Vault enhances Aethir's ability to provide quality GPU computing resources to these partners.
- For example, Aethir collaborated with TensorOpera to successfully train the TensorOpera Fox-1 model on a decentralized cloud network, demonstrating its capability to support large-scale AI training.
- $100 million ecosystem fund:
- Aethir's $100 million ecosystem fund supports AI and gaming innovation projects by providing GPU computing resources. EigenLayer's staking mechanism offers additional power support for these projects, accelerating ecosystem expansion.
4. Key collaboration analysis of Aethir ecosystem
Aethir's success is inseparable from its extensive collaborations with industry-leading projects. The following are highlights of several key collaborations:
1. MetaGravity:
- Aethir, in conjunction with MetaGravity's HyperScale engine, supports ultra-large scale multiplayer gaming experiences, providing game developers with low-cost, efficient computing resources. This collaboration showcases Aethir's potential in the cloud gaming sector.
2. TensorOpera:
- Aethir supports the training of TensorOpera Fox-1 model, marking the first use of a decentralized cloud network for large-scale LLM training, demonstrating Aethir's technological leadership in the AI field.
3. Solana:
- Aethir introduced ATH to the Solana blockchain, enhancing accessibility for developers and consolidating its position in the Web3 space through Solana's AI agents and DeFi ecosystem.
4. Avalanche:
- Through its $100 million ecosystem fund and infraBUIDL(AI) program, Aethir supports AI innovation projects within the Avalanche ecosystem, providing developers with quality GPU resources.
5. SuperScale:
- Aethir partnered with SuperScale to develop instant play cloud gaming solutions, reducing user acquisition costs and increasing game participation. Case studies show that Aethir's instant play technology significantly improved user retention and revenue.
6. Filecoin:
- Aethir collaborated with the Filecoin Foundation to explore renting GPU resources to Filecoin storage providers, providing on-demand archiving services while utilizing Filecoin to store AI training data.
7. GAIB:
- Aethir partnered with GAIB to launch a GPU tokenization pilot program, tokenizing GPU income through the BNB chain, creating a new asset class for investors and simplifying the financing process for power providers.
5. Risks and Challenges
1. Lock-up period risk:
- The 1-year lock-up period and 30-day withdrawal period of EigenLayer ATH Vault may limit participation from users with short-term liquidity needs, impacting the popularity of staking.
2. Market volatility risk:
- Fluctuations in ATH price may impact the actual value of staking rewards. The ATH price fell 16.7% in the past week, below the global crypto market performance (-2.8%).
3. Regulatory challenges:
- Decentralized cloud computing faces regulatory barriers, especially in the onboarding of non-Web3 native power providers. Although EigenLayer's AVS model reduces these barriers, ongoing attention to global regulatory dynamics is necessary.
4. Centralization risks:
- EigenLayer's re-staking mechanism may lead to centralization risks due to the dominance of a few large staking pools (e.g., Lido). Aethir needs to mitigate this issue by diversifying the staker structure.
6. Conclusion and investment outlook
Aethir's ATH staking mechanism provides users with diverse earning opportunities through EigenLayer ATH Vault, Checker Node repurchase plan, and Gaming and AI staking pools, while supporting the expansion of its decentralized GPU network. EigenLayer ATH Vault significantly enhances Aethir's power expansion capacity, user participation, and ecosystem revenue potential through liquid staking tokens eATH, AVS model, and revenue sharing mechanisms. As of June 2025, Aethir has staked 160 million ATH, accounting for 8.9% of circulating supply, demonstrating strong community support for its vision.
From an investment perspective, Aethir's high network utilization (70%), annual revenue ($113 million), and the ecosystem synergies with 150+ partners indicate its significant competitive advantage in the field of decentralized cloud computing. The integration with EigenLayer further enhances its appeal and scalability. However, investors need to pay attention to lock-up periods, market volatility, and regulatory risks.
Investment recommendations:
- Long-term investors: Aethir's staking mechanism and high APR (200%-400%) are suitable for long-term investors seeking high returns, especially during the triple reward campaign.
- Short-term investors: Should carefully consider the lock-up period's impact on liquidity and pay attention to the potential applications of eATH in DeFi.
- Risk preference: It is recommended to balance ATH staking with other diversified investments to hedge against market volatility and regulatory uncertainty.
Aethir, through its innovative staking mechanism and strategic partnerships, is becoming a leader in decentralized cloud computing for AI and gaming, with significant growth potential to watch.
References
- Aethir official website: https://aethir.com
- Aethir ecosystem page: https://ecosystem.aethir.com
- Aethir documentation: https://docs.aethir.com(https://docs.aethir.com/aethir-staking)(https://docs.aethir.com/aethir-staking/staking-user-how-to-guide)
- CoinGecko Aethir price data: https://www.coingecko.com
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