Ether.fi Cash Visa Credit Card: Non-Custodial DeFi-Powered Spending Solution

Basic Information

The Ether.fi Cash card is a DeFi-powered Visa credit card that allows users to spend against their crypto holdings without selling or transferring assets. It functions through a unique "borrow-on-swipe" model where users can either directly spend stablecoins from their wallet or borrow against their yield-bearing collateral. The card operates on a non-custodial basis, meaning users maintain full control of their crypto assets in their own Gnosis Safe wallet.

The core innovation of this card is its ability to bridge decentralized finance with everyday spending needs without requiring users to off-ramp their crypto holdings. Transactions settle on the Scroll Layer-2 network, providing faster and more cost-effective processing than traditional Ethereum mainnet transactions.

Rewards and Benefits

Cashback Program

Ether.fi Cash offers a tiered cashback structure based on membership level:

• Core tier: 2% cashback on all purchases
• Luxe tier: 3% cashback on all purchases
• Pinnacle tier: 3% cashback on all purchases
• VIP tier: Premium cashback rates (higher than other tiers)

All cashback rewards are paid in SCR tokens (Scroll's native token). There are no category restrictions or spending caps on cashback earnings, which compares favorably to many traditional credit card reward programs.

Loyalty Program

The card features "The Club" loyalty program with points earning across multiple activities:

• Spending: 3,000 loyalty points for every $1,000 spent (applies to all levels)
• Staking (Value-accruing assets): 3 points/day for every $1,000 staked
• Liquid (Automated strategy vaults): 9 points/day for every $1,000 staked
• Referral bonuses: Earn 1% cashback on referrals' purchases plus 10% of their loyalty points

Members can increase their tier status by accumulating loyalty points (10K for Luxe, 50K for Pinnacle) or by staking ETHFI tokens (25,000 sETHFI for Luxe, 250,000 sETHFI for Pinnacle).

The Club Membership Benefits

Additional benefits include airport companion lounge access and concierge services for all membership tiers, with enhanced features for higher tiers. VIP members receive exclusive access to investment opportunities through the Ventures program.

Fees and Limits

Unlike traditional credit cards, the Ether.fi Cash card doesn't charge late fees or have required minimum payments. However, users must maintain sufficient collateral to avoid liquidation of their assets. Interest accrues continuously on borrowed funds but not on direct stablecoin spending.

Transactions in currencies other than USD are subject to Visa's exchange rates plus a 1% foreign exchange fee. Currently, all transactions settle in USD, though Euro support is planned for the future.

Card Tiers and Options

All tiers include the following shared features:

• Non-custodial wallet structure
• Gasless transactions
• Contactless payment capability
• Apple Pay & Google Pay compatibility
• Family member cards with controls

The tier structure is designed to accommodate different user needs, from casual crypto users to high-net-worth individuals deeply embedded in the crypto ecosystem. Users can upgrade their tier by accumulating loyalty points or staking ETHFI tokens, with no annual fee required for any tier.

Top-Up Methods

Ether.fi Cash uses an on-demand, non-custodial model—users do not need to pre-load or top up the card in advance. Instead, when a purchase is made, funds are directly deducted in real-time from the user's Gnosis Safe wallet (for stablecoin spending), or the platform automatically borrows USDC against supported collateral at the moment of transaction. Supported assets include USDC, LiquidUSD for direct spending, and eETH, ETH, stETH, and DeFi LP tokens for collateralized spending—no currency conversion fees apply on direct stablecoin use, but borrowing may incur variable DeFi interest rates. Users retain custody of their assets up to the point of transaction; there is never a requirement to transfer funds to the card provider in advance. All processes are managed within the Ether.fi app, offering instant access with no minimum/maximum top-up limits or time delays, but active collateral management is necessary to avoid liquidation risk during market volatility.

Self-Custody Hybrid Custody

Users maintain complete control of their crypto assets in a personal Gnosis Safe wallet until the moment they choose to spend or borrow. When making a purchase, they either spend stablecoins directly from their self-custodial wallet or borrow against yield-bearing assets, with the platform holding collateral as part of a secured loan arrangement. This means users retain their private keys and ownership rights up to the point of borrowing, but the system uses smart contracts to manage collateral and loan repayment. If the provider disappeared, users would still control their remaining assets, though any open loans or collateralized positions would need resolving through the on-chain contracts. The model lets users preserve investments and earn yield while accessing spending power, but requires vigilant collateral management to avoid liquidation risks during market downturns. Overall, it blends the security and autonomy of self-custody with the flexibility and real-world utility of collateralized credit spending.

Supported Currencies and Conversion

Ether.fi Cash supports the following cryptocurrencies:

For Direct Spending (Direct Pay mode):

• USDC
• LiquidUSD (Ether.fi's yield-bearing stablecoin)

For Collateral (Borrow mode):

• eETH (Ether.fi's liquid staked ETH token)
• ETH
• stETH
• Liquid vault LP tokens
• Other yield-bearing crypto assets

The card currently only supports USD as its base currency, though Euro support is planned for future implementation. For non-USD purchases, the card applies Visa's standard exchange rates plus a 1% foreign exchange fee. Transactions appear in USD in the app regardless of where they occur.

The system offers two primary modes for spending:

1. Direct Pay: Spend stablecoins directly from your Safe with no conversion
2. Borrow Mode: Automatically borrow USDC against collateral at point of purchase

When using Borrow Mode, the system creates a loan against your collateral at the time of purchase, with no separate conversion fee beyond the standard interest rates for borrowing.

Geographic Availability

Ether.fi Cash is available in numerous countries across multiple continents, though availability is subject to ongoing regulatory developments.

Currently supported regions include:

• Most European countries (including UK, Germany, France, Spain, Italy)
• Hong Kong, South Korea, Taiwan, Thailand
• Brazil, Argentina
• UAE and Switzerland

Restricted Regions

Country Restrictions:

• United States: Restricted in Arizona, Delaware, Georgia, Idaho, Louisiana, Maryland, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oregon, Rhode Island, South Dakota, Utah, Vermont, Washington, Wisconsin, Wyoming
• Completely restricted: Estonia, Finland, India, Indonesia, Malaysia, Netherlands, South Africa, Turkey
• FATF-blacklisted countries (North Korea, Iran, Myanmar) are fully blocked including ATM transactions

Ether.fi continues to expand its geographic coverage as regulatory compliance allows. Users should check the current availability before applying, as restrictions may change based on evolving regulatory frameworks.

Compliance and Security

KYC Requirements

Ether.fi Cash requires full Know Your Customer (KYC) verification for all users, including:

• Government-issued ID submission
• Video selfie verification
• Address verification

This verification is mandatory before ordering and using the card, regardless of tier level.

Security Features

The card incorporates several security measures:

• Non-custodial structure: Funds remain in user-controlled Gnosis Safe wallet
• On-chain spend limits: Users can set custom spending restrictions directly in the smart contract
• Instant card freezing: Ability to freeze the card immediately via the app
• Visa Zero Liability: Standard Visa protection against fraudulent charges
• Optional insurance: Nexus Mutual coverage available for smart contract risk

Regulatory Compliance

Ether.fi Cash operates through partnership with regulated financial entities to ensure compliance with applicable laws:

• Full AML (Anti-Money Laundering) monitoring
• Sanctions compliance screening
• Blocked transactions for certain merchant categories (gambling, financial transfers, etc.)
• Adherence to local regulatory requirements in each supported jurisdiction

Technical Details

Smart Contract Infrastructure

Ether.fi Cash is built on a sophisticated smart contract framework:

• Settlement network: Scroll Layer-2 (Ethereum scaling solution using zero-knowledge rollup technology)
• Wallet technology: Gnosis Safe multi-signature wallet
• Transaction processing: Gasless transactions through meta-transaction implementation
• Zero-knowledge technology: Enhances privacy while maintaining security and compliance

The integration with Scroll allows for faster and more efficient transaction verification without revealing sensitive information. This architecture significantly reduces transaction costs compared to Ethereum mainnet while inheriting Ethereum's security guarantees.

Collateral Management

The card's lending functionality operates through a collateralized debt position model:

• Collateral ratio: Dynamic based on asset volatility
• Liquidation protection: System monitors "health factor" of collateral vs. debt ratio
• Yield preservation: Users continue earning yield on collateral assets while borrowing
• Automated debt service: Option to direct yield earnings toward loan repayment
• Smart liquidation: Staged liquidation process to minimize user impact during market volatility

This system allows users to maintain exposure to their crypto investments while accessing spending power, creating a unique bridge between DeFi participation and real-world expenditure.

User Experience

Ether.fi Cash provides a comprehensive user experience through its mobile apps (iOS and Android) with the following features:

• Unified dashboard: Integrated view of card activity, collateral status, and rewards
• Card management: Ability to freeze/unfreeze the card, set spending limits, and view transaction history
• Collateral monitoring: Real-time tracking of collateral health factor and liquidation thresholds
• Mode selection: Toggle between Direct Pay and Borrow modes based on preference
• Rewards tracking: Monitor cashback earnings and loyalty point accumulation
• Support access: Standard support for all tiers; dedicated concierge for higher tiers

The user interface is designed to abstract away blockchain complexity, presenting a familiar banking app experience while preserving the non-custodial benefits of self-custody. Transactions appear instantly in the app, allowing real-time monitoring of spending and available credit.

Common points of user feedback include:

• Positive reception of the non-custodial model and high cashback rates
• Appreciation for the free Club membership with tier progression through loyalty points
• Initial learning curve for collateral management
• Appreciation for DeFi integration and yield preservation

Personal Finance Services

Ether.fi Cash offers comprehensive personal finance services that extend beyond the card functionality:

These services create a comprehensive financial ecosystem that bridges traditional banking with decentralized finance:

• Fiat-to-crypto transfers: Direct on/off-ramps with tiered limits and reduced fees for higher membership levels
• Global wire transfers: Send money internationally through traditional banking rails
• Portfolio management: Track and manage on-chain assets and investments
• Tax reporting: Automated generation of crypto transaction reports for tax compliance

Best Suited For

• DeFi enthusiasts who want to leverage their crypto holdings without disrupting their investment strategy
• Ethereum stakers who use eETH or other liquid staking tokens and want to access their value without unstaking
• Crypto yield farmers who seek to maintain exposure to yield-generating positions while spending against them
• International travelers who prefer a crypto-backed spending solution with lower FX fees than many traditional options
• High-net-worth crypto investors who need significant spending capacity without liquidating their digital assets
• Families looking to manage multiple cards with controls for different members

Pros and Cons

Pros

• Non-custodial design preserves user sovereignty over crypto assets
• Free Club membership with tier progression through loyalty points
• Higher cashback rates (2-3%) than most traditional credit cards
• No complex category restrictions on rewards
• Continues earning yield on collateral while borrowing against it
• Eliminates traditional off-ramping process and delays
• Global acceptance at over 100 million Visa locations
• Comprehensive loyalty program with multiple ways to earn points
• Integrated personal finance services including tax reporting

Cons

• Geographic restrictions limit availability
• Market volatility could lead to liquidation of collateral
• Full KYC requirements may deter privacy-focused users
• 2% ATM withdrawal fee higher than many traditional debit cards
• Fiat-to-crypto transfer limits may be restrictive for some users

Conclusion

Ether.fi Cash represents a significant innovation in bridging decentralized finance with everyday spending. Its non-custodial approach sets it apart from most competitors in the crypto card space, allowing users to maintain full ownership of their assets while accessing their value for purchases.

The card's integration with Ether.fi's broader ecosystem provides unique synergies for users already engaged in staking or yield farming. The ability to maintain yield-generating positions while simultaneously borrowing against them creates a compelling value proposition, especially for those deeply embedded in the crypto economy.

The tiered membership structure offers flexibility, from the accessible Core tier to the exclusive VIP tier, with a clear path for progression through loyalty points or staking. The free Club membership with no annual fees makes the card more accessible to a wider audience. The cashback rates are competitive even by traditional credit card standards, and the lack of category restrictions simplifies the rewards experience.

The addition of comprehensive personal finance services, including portfolio management and tax reporting, creates a holistic financial solution that addresses both crypto and traditional financial needs. This integration makes Ether.fi Cash more than just a spending card – it's a bridge between traditional finance and DeFi.

While Ether.fi Cash requires active collateral management and faces some geographic limitations, it represents one of the most sophisticated attempts to bridge the gap between crypto wealth and real-world utility. For users comfortable with both crypto and credit management, it offers a powerful tool to leverage digital asset holdings without sacrificing ownership or yield potential.

Additional Information

Liquidation Process

If a user's debt exceeds the safe borrowing limit due to decreases in collateral value, Ether.fi's "Debt Manager" contract initiates a liquidation process:

1. The system first attempts to liquidate 50% of collateral to cover outstanding debt
2. If that proves insufficient, it proceeds to liquidate the remainder of the collateral
3. Any assets remaining after debt settlement stay in the user's Safe
4. Users can continue using the card with the residual balance

To avoid liquidations, users should:

• Monitor their "health factor" (collateral vs. debt ratio)
• Add more collateral during market downturns
• Pay down debt when collateral values decline
• Consider diversifying collateral with stablecoins to reduce volatility risk

Repayment Structure

Unlike traditional credit cards with fixed billing cycles, Ether.fi Cash offers a flexible repayment structure:

• Interest accrues continuously on borrowed funds (not on direct stablecoin spending)
• No late fees or required monthly payments
• Users can repay loans at their discretion by depositing funds to their Safe
• Option to direct yield from staked assets toward the balance (upcoming feature)
• Interest rates are variable based on DeFi market conditions rather than traditional credit card APRs of 15-30%

This flexibility provides freedom but requires self-discipline to manage debt growth. The system is designed to integrate with users' broader DeFi strategy, potentially allowing yield from investments to offset or cover borrowing costs.