Silo Finance recently took to X (formerly Twitter) to spotlight an exciting development in the DeFi space. In their post, they praised a report from Token Terminal on Ether.fi's performance, while highlighting their own weETH ↔ ETH vault on Arbitrum that's currently yielding a solid 3.1% APR. This comes at a time when ETH yields are starting to heat up, thanks to growing restaking activities.

Let's break this down step by step, especially if you're new to these terms. DeFi, or decentralized finance, is all about financial services built on blockchain without traditional banks. Yields like APR (annual percentage rate) represent the returns you can earn by lending or providing liquidity to these protocols.

Understanding Silo Finance and Its Unique Approach

Silo Finance is a non-custodial lending protocol operating on networks like Ethereum, Arbitrum, and others. What sets it apart is its "isolated design," meaning each lending market (or silo) is separate. This reduces risk—if one market has issues, it doesn't affect others. You can lend assets like ETH and borrow against them, or vice versa, to earn yields.

In this case, the weETH-ETH vault allows users to deposit weETH (wrapped Ether.fi's eETH, a liquid restaked token) and ETH, creating a paired liquidity pool. The 3.1% APR is the return lenders or liquidity providers can expect, backed by strong liquidity to ensure smooth transactions.

The Role of Ether.fi and Restaking in Boosting Yields

The shoutout to Ether.fi is key here. Ether.fi is a liquid staking protocol where you can stake ETH to earn rewards while keeping your assets liquid through tokens like eETH, which can be wrapped into weETH for use in other DeFi apps.

According to Token Terminal's Q3 2025 report on Ether.fi, the protocol saw massive growth. Their total value locked (TVL)—the amount of assets staked or deposited—jumped from $6.66 billion to $11.51 billion, a whopping 78% increase. This surge is largely driven by restaking demand.

Restaking? It's a hot trend in Ethereum's ecosystem. After staking ETH to secure the network, you can "restake" those staked assets (via protocols like EigenLayer) to secure additional services or chains, earning extra rewards. Ether.fi integrates this, allowing users to multiply their yields. As more people restake, it creates demand for assets like weETH, which in turn boosts yields in connected protocols like Silo Finance.

The report emphasizes how this restaking boom is "shaping real yield across DeFi." Real yield means sustainable returns from actual protocol activity, not just inflationary tokens.

Why ETH Yields Are Getting Interesting Again

As Silo Finance notes, "ETH yield is quietly getting interesting." With Ethereum's price rebounding (from around $2,400 to $4,150 in Q3 2025, per related reports), and restaking amplifying rewards, holding or lending ETH isn't just about price appreciation anymore. It's about passive income.

For blockchain practitioners and meme token enthusiasts alike, this matters because higher DeFi yields can provide capital to trade or invest in volatile assets like memes. Plus, with Arbitrum's low fees and fast transactions, accessing these vaults is efficient and cost-effective.

How to Get Started with Silo Finance's Vault

If you're intrigued, head over to Silo Finance's app on Arbitrum. Connect your wallet (like MetaMask), deposit weETH or ETH into the vault, and start earning that 3.1% APR. Remember, always do your own research—yields can fluctuate based on market conditions, and there are risks like impermanent loss in liquidity pools.

This tweet from Silo Finance not only promotes their product but also underscores a broader trend: restaking is revitalizing ETH's role in DeFi. Keep an eye on updates from Ether.fi and Token Terminal for more insights into where yields are headed next.