Liquid restaking protocol ether.fi has raised $23 million in a Series A round led by Bullish Capital and CoinFund.

The round also included investment from OKX Ventures, Foresight Ventures, Consensys and Amber, among others. CoinDesk is owned by the Bullish Group.

The raise comes off the back of a rapid growth period for the restaking protocol, with the total amount of value locked (TVL) on the protocol rising to $1.66 billion from $103 million, DefiLlama data shows.

The company also raised $4 million in a previously unannounced simple agreement for future equity (SAFE) round that closed toward the end of last year, it said in a tweet.

“Ether.fi has seen remarkable growth, and we are thrilled to welcome the backing of leading crypto investors to support our continued expansion,” said Mike Silagadze, CEO and co-founder of ether.fi.

Restaking is a strategy used to earn an additional yield on ether (ETH) that is already “staked” on the main Ethereum blockchain. Currently, ether stakers can generate an annual yield of 3.85%.

The restaking protocol allows those staking ether to restake on EigenLayer in return for eETH, a liquid token that can be used across the decentralized finance (DeFi) market.

The total amount of capital locked across restaking protocols has risen to more than $10 billion over the past two months. This rise can be attributed to the bullish sentiment among investors who are looking to receive rewards whilst retaining exposure to the Ethereum ecosystem. Rewards come in the form of yield of loyalty points, which are tipped to eventually convertible to token airdrops.

“As investors pivot towards Ethereum’s DeFi ecosystem post-bitcoin ETF launch, ether.fi takes the lead as the only protocol to allow redemptions and not just speculative one-way deposits, showcasing our reliability and dedication to empowering users,” Silagadze added.

“Our journey is not just about chasing the bull market; it’s about sculpting the future of decentralized finance one staking reward at a time. We are revolutionizing restaking, transforming illiquid assets into opportunities. By leading the market with native restaking rewards, we aim to fuel the Eigenlayer ecosystem’s exponential growth."

UPDATE (Feb. 28, 15:06 UTC): Adds SAFE funding round in fourth paragraph.