Puffer, a native liquid re-collateralization protocol (nLRP) built on $EigenLayer, is showing strong innovation in the blockchain field. It aims to enhance the performance and diversity of Ethereum Proof of Stake (PoS) validators and make native re-collateralization more accessible and decentralized.
Puffer introduced a slash protection mechanism and validator tickets to ensure stable reward distribution and improve the security of stakeholders. Its mechanism includes two tokens: liquidity staking token pufETH and governance token PUFI. Users can obtain pufETH by staking ETH on Puffer, while PUFI is used for voting governance in Puffer DAO. The specific token economic model has not yet been disclosed.
From the project roadmap, Puffer has gone through the stages of Ethereum Foundation grants, nLRP R&D, public testnet, feature layer integration, and launched the mainnet on May 8. Puffer AVS will be launched later. Puffer is tasked with establishing new standards for secure validator operations, with a focus on maintaining Ethereum's decentralization. This goal is achieved by implementing anti-slashing technology to reduce risks, enable a wider range of validators, and enhance the diversity of node operators.
The Puffer Finance protocol provides a decentralized, accessible, and innovative solution for Ethereum validators and stakers. With liquidity staking, slash protection, and native liquidity re-staking capabilities, Puffer is poised to make Ethereum's PoS ecosystem more efficient and accessible to everyone.
From the perspective of the market structure, Lido has become the leader in the Ethereum staking market, accounting for 31.7% of the market share, followed by two centralized exchanges, which account for 14.9% and 3.9% of the market share respectively. This centralized trend is obviously an unfavorable development for Ethereum.
Puffer Finance aims to solve the centralization problem of the Ethereum network, and has taken "decentralization" as its core purpose since its design. Puffer Finance has adopted a completely open permissionless model since the testnet stage, supporting any individual who is interested in joining the Puffer node verification work. In addition, Puffer has also set up a "Burst Threshold" mechanism, promising to voluntarily limit its market share in Ethereum verification nodes to no more than 22% of the total Ethereum verification nodes, and prevent Ethereum from being over-centralized through this self-restraint method.
Since the launch of EigenLayer last year, the Ethereum re-hypothecation vertical has flourished, with multiple EigenLayer-based platforms launched this year. According to DeFiLlama, Puffer Finance is currently the third largest liquidity re-hypothecation protocol after Ether.Fi and Renzo in terms of total value locked (TVL). Puffer currently has a TVL of $1.17 billion, while Ether.Fi is $3.5 billion and Renzo is $2.95 billion.
With Series A funding in place, Puffer Finance now aims to launch its mainnet, which it says will expand validator participation in the Ethereum ecosystem and enhance its decentralization. “By lowering the entry requirement for validators to just 1 ETH and increasing their income by combining Ethereum’s Proof of Stake with the Active Validation Service (AVS) re-staking yield, Puffer’s mainnet sets a new standard for innovation in the liquidity re-staking space,” the project said.
Puffer previously received a $120,000 grant from the Ethereum Foundation for his open-source tool called Secure-Signer, which allows Ethereum validators to reduce the risk of slashing or penalties.
“By lowering barriers to entry and enhancing security measures, Puffer’s technology ensures broader participation and strengthens the integrity of the network,” Electric Capital co-founder and general partner Avichal Garg said in the statement.
Peter Johnson, co-head of venture capital at Brevan Howard Digital, said in a statement that Puffer Finance is building "critical infrastructure to enhance the decentralization and security of Ethereum" and that BHD remains committed to "supporting projects that are critical to the growth and security of Ethereum." As the first LRT project invested by BinanceLabs, Puffer Finance is the third largest project in the LRT track in terms of locked positions, with a locked position of over $1 billion.
The stETH deposited by users into Puffer_finance will be redeemed, thereby reducing the monopoly position of LidoFinance. The current results are significant, and 3-4% of stETH will be redeemed soon.
The innovation that Puffer Finance brings to the blockchain space is not only transformative, but also essential to the advancement of a truly decentralized financial ecosystem. By lowering the barrier to entry and strengthening security, Puffer's innovative technology ensures that Ethereum validation can gain wider participation and enhances the integrity of the Ethereum network. With the upcoming launch of the Puffer Finance mainnet, Puffer's direction and focus remain firmly on creating a more inclusive, secure and decentralized Ethereum ecosystem. ###$$#币安累计交易量突破100万亿美元 #YGG、ADA、ENA解锁 #山寨季要来了吗？ $BTC
