Explore Puffer Finance (PUFFER): native Liquidity restake protocol

What is Puffer?

Puffer Project Introduction

Puffer Finance is a native Liquidity restake protocol built on the EigenLayer, aimed at improving the performance and diversity of Ethereum’s Proof of Stake (PoS). With Puffer, individuals can become validators with a minimum of 1 ETH, thus increasing the convenience and Decentralization of native restaking. Users can stake ETH and receive the platform’s native Token pufETH, thereby obtaining additional rewards through Ethereum’s PoS and Restaking mechanism. The protocol utilizes advanced slashing mechanisms to protect staked assets and implements capital efficiency strategies to maximize returns.

Puffer Main Mechanism

First, let’s briefly explain the difference between Liquiditystake and Liquidity again stake:

Comparison between Liquiditystake and Liquiditystake

Liquiditystake refers to the process of tokenizing stake assets. For example, when users stake ETH on platforms like Lido, they can receive stETH. With the help of stETH and other liquid stake tokens (LST), users can contribute to network security without sacrificing liquidity. After completing native ETH stake, users can use LST on other platforms. EigenLayer introduces the concept of “re-stake” on the ETH network. It allows ETH that has already been staked on the ETH network to be staked again on other layer-two protocols, providing additional security for various Decentralization services on the ETH network and earning additional rewards. Liquiditystaking secures PoS blockchains by staking assets, while Liquidity re-staking provides security for external module systems such as Oracle Machine.

Native Liquidity again stake protocol

Puffer is built on top of EigenLayer, and Puffer operates as a native Liquidity restake protocol:

• Native: Puffer only uses native ETH;
• Liquidity: Users can stake 1 ETH on Puffer to receive 1 pufETH, which can be used in other DApps, ensuring sufficient Liquidity;
  • Re-stake: Liquidity re-staking mechanism allows users to use the ETH deposited in Puffer as Collateral for EigenLayer services; The native Liquidity re-stake mechanism of Puffer enables validators to not only maintain their validator status and earn income, but also use their staked pufETH for other activities, thereby enhancing the security of staked assets and capital utilization efficiency.

Operation process

The mechanism of Puffer supports network Consensus by stake holders (Stakers) providing ETH to Node operators (NoOps), and Node operators obtain PoS rewards through verification and transfer some ETH to ReOps for restaking. ReOps restakes ETH to obtain additional rewards, and a portion of these rewards is returned to NoOps. Ultimately, NoOps rewards stake holders, forming a continuous cycle of reward mechanism.

Secure-Signer and RAVe’s slashing technology

Puffer Finance uses its independently developed innovative slashing protection mechanism - Secure-Signer (remote signing tool) and RAV technology to solve slashing issues in Ethereum and Eigenlayer networks, providing participants with low-risk double rewards. Secure-Signer is a remote signing tool that represents the Consensus client managing validator Secret Key and can run on both the Consensus client locally and on remote servers; RAVe, short for Remote Attestation Verification, is dedicated to achieving permissionless operation of the Puffer protocol, allowing it to prove to user devices that it is running privacy-preserving programs, ensuring high integrity and confidentiality of off-chain computation processes.

Puffer Financing Background

• On 2022-6-1, Puffer completed a pre-seed round of financing of 650,000.
• On 2023-08-08, Puffer completed a $5.5 million seed funding round.
• On 2024-04-16, Puffer completed a $18 million Series A financing, led by Brevan Howard Digital and Electric Capital, with participation from Coinbase Ventures, Kraken Ventures, etc. It is worth noting that the project has also received funding from the Ethereum Foundation.

Puffer Token Tokenomics

$PUFFER: Governance Token

$PUFFER is a key governance Token in the Puffer and UniFi ecosystems, playing multiple important roles:

1. Governance participation: $PUFFER holders will be able to influence the development of Puffer LRT, Puffer UniFi, and UniFi AVS. Specifically, holders will participate in decisions on key protocol parameters (such as fees, limits, collateral requirements), selection of guardians, etc.
2. Reward Management: The three major products of the Puffer ecosystem (Puffer LRT, UniFi AVS, and UniFi Rollup) will generate rewards, and Tokenholders have the right to manage these rewards to ensure that they are effectively used to support the rise and technological innovation of the entire ecosystem.
3. Promote Decentralization: The design of $PUFFER aims to promote the Decentralization governance of the Puffer ecosystem. By introducing the vePUFFER governance mechanism, users can lock $PUFFER Tokens to obtain vePUFFER NFTs and accumulate voting power. This mechanism aims to reward long-term participation while providing users with flexibility to unlock their Tokens at any time. This will maintain long-term community participation and ensure the Liquidity of individual assets.

Token Allocation

$PUFFER total supply is 10 billion (initial supply is 102,300,000)

• Airdrop Rewards: 13%
• Ecology and Community: 40%
• Supports Ethereum development: 1%
• Early contributors: 20%
• Investors: 26%

How to claim Airdrop

7.5% of $PUFFER will be used for the first season Airdrop of Crunchy Carrot Quest. The Airdrop claim period is from October 14, 2024 to January 14, 2025, and the Airdrop eligibility Snapshot was taken on October 5, 2024. Visit: https://claims.puffer.fi the official claims website for claiming $PUFFER. Crunchy Carrot Quest Airdrop activity has entered its second season, and 5.5% of the AirdropToken will be used to reward this Airdrop: https://quest.puffer.fi ##gate will launch PUFFER and PUFFER new coin Mining

PUFFER Online

Gate.io will launch Puffer (PUFFER) trading at 20:00 (UTC+8) on October 14, 2024.

PUFFER New Coin Mining

In preparation for the upcoming listing of PUFFER, gate will launch PUFFER new coin Mining at 20:00 (UTC+8) on October 14, 2024, to share 1,500,000 PUFFER (PUFFER staking pool: 600,000 PUFFER, GT “one coin multiple mining” pool: 900,000 PUFFER). gate Startup New Coin Mining is a way to obtain rewards for new project Tokens by participating in stake or providing Liquidity. Users can stake specified Tokens in the Startup New Coin Mining pool to receive corresponding project Token rewards. gate PUFFER New Coin Mining For more details, please refer to the activity announcement: https://www.gate.io/announcements/article/39794