Puffer Finance became the top 4 liquid staking platforms according to TVL after only 24 hours of lau
The newly announced project invested by Binance Labs, Puffer Finance, has become the top 4 liquid staking platform according to TVL after only 24 hours of launch.
Puffer Finance became the top 4 liquid staking platforms according to TVL after only 24 hours of launch
Restaking is a new activity that reuses Liquid Staking Token assets such as stETH to participate in staking on other networks' Validators. Most projects do not have tokens with huge growth potential and staking has recently become an area that attracts a lot of attention from the community as the Dencun upgrade on Ethereum is near.
One of the notable names in this segment is Puffer Finance, a project recently announced to be invested by Binance Labs. Capitalizing on the hype surrounding the investment announcement, the project also began allowing participating users to deposit stETH into the protocol.
Thanks to that, in just 24 hours of launch, Puffer Finance attracted 153 million USD staked ETH, making its name as the 4th largest liquid staking protocol today. The competitors ranked above are ether.fi, Kelp DAO and Renzo, according to TVL data from DefiLlama.
Puffer Finance is a liquid staking protocol built on EigenLayer. This protocol uses anti slashing (an anti-punishment mechanism for validators) and secure signer, a remote signing tool that helps prevent invalid validator behavior.
The goal is to diversify the validator set and reduce the centralization of Proof of Stake Ethereum, while also solving the challenges faced by individual validators.
The two main types of customers that Puffer Finance targets are general users and single validators who do not have enough 32 ETH to perform Ethereum validation.
For general users: Allows users to stake ETH to receive pufETH and profits.
For validators: Instead of having to stake up to 32 ETH to have the right to run an Ethereum node, they will only need 2 ETH to run the Puffer node.
This is just the early launch phase of the project. It is expected that Puffer Finance will fully launch by the end of this year. At that time, users need to lock Lido's stETH to mint pufETH. This pufETH can be converted back into ETH and retake into validators.
Overall, this plan will likely help eliminate Lido's dominance, while increasing the number of native ETH, not just staked ETH as currently.
In addition, Puffer Finance attracts a lot of attention partly thanks to its reward points system. For the crypto community, these points can be seen as a token airdrop strategy.
There is evidence from many projects "openly" airdropping with point reward models such as friend.tech, Blast, MarginFi, Rainbow Wallet, so it is understandable that users expect Puffer Finance to airdrop tokens.
Currently, users can deposit stETH into the protocol to receive bonus points, and earn additional points if they deposit stETH from EigenLayer.
What is Puffer Finance?
Puffer Finance is a liquid staking protocol built on EigenLayer. This protocol uses anti slashing (an anti-punishment mechanism for validators) and secure signer, a remote signing tool that helps prevent invalid validator behavior. Puffer Finance's goal is to diversify the validator set and reduce the centralization of Proof of Stake Ethereum, while also solving the challenges faced by individual validators.
The two main types of customers that Puffer Finance targets are general users and single validators who do not have enough 32 ETH to perform Ethereum validation.
+ For general users: Puffer Finance will be a platform that allows users to stake ETH to receive pufETH and profits in return.
+ For validators: Instead of having to stake up to 32 ETH to have the right to run an Ethereum node, they will only need 2 ETH to run the Puffer node.
Puffer Finance's technology
Secure Signer
Puffer secure signer is a remote signing tool built with a grant from the Ethereum Foundation, designed to prevent suspicious behavior that can occur when using Intel SGX.
Secure Signer leverages Trusted Execution Environments (TEE) and is currently implemented as Intel SGX. To minimize undue impact, Puffer Finance is committed to ensuring diversity with plans to deploy Secure-Signer on AMD's SEV TEE and new hardware at market launch.
RAV
RAV (Remote Attestation Verification) is the tool that Ethereum uses to control the remote activities of validators active in the network. To explain simply, RAV is the way Ethereum uses to minimize the damage that a validator can cause to the network, thereby enhancing performance, security and scalability. safe.
- Puffer DAO creates a staking module that only allows PoS authentication and does not allow restaking, thus creating a safe environment for NoOp (Node Operators).
- Stakers will stake their ETH amount and receive the corresponding amount of pufETH in return.
- To register to run a node, NoOps will send a validator ticket with 1 ETH to Puffer Protocol. In return, they will receive pufETH and this amount will be locked until NoOp no longer performs the validation function.
- Each restaking module will contain a queue of NoOps registered for validation, and when the Puffer Pool accumulates 32 ETH from user deposits and bounties, it will provide running permissions to the pending NoOps.
- Once the validator is deployed, NoOps will be validated according to the time recorded on their validator ticket. During the process, NoOps will keep 100% of the validation rewards.
- Restaking operators will perform AVS and receive commissions from their services, thereby increasing rewards for stakers.
- When exiting the validator, NoOps will receive their locked pufETH and unused validator tickets will be returned to NoOps.
