What is Puffer Finance? Puffer Finance is a new generation Liquid Staking Derivatives protocol with many superior features compared to traditional LSD platforms. So, what’s special about Puffer Finance? Let’s find out together in the article below.
To understand more about Puffer Finance, people can refer to some of the articles below:
- What Are Liquid Staking Derivatives (LSD)? TOP 5 LSD Projects with Great Growth Potential
- What is LSDfi? The First Puzzle Pieces & Potential In The LSDfi Array
- Overview and Liquidity Flow in LSDfi
- What is Lido Finance (LDO)? Overview of Electronic Conveniences Lido Finance
Puffer Finance Overview
Issues raised
First, the Ethereum staking industry is facing problems with low-configuration nodes and no Ethereum, along with high hardware costs, making it increasingly difficult to deploy Validator. This has a negative impact on the decentralization of the Ethereum network.
Besides, there are issues about Slashing. Slashing is a penalty imposed on validators on Ethereum PoS when they violate the rules of the network. Violations may include:
- Recommend two different blocks for the same location.
- Attest two different blocks to the same block.
- Do not participate in the authentication process for a long time.
- Get hacked and lose control of your private key.
When slashed, a Validator will lose a portion of their staked ETH. The amount of ETH lost will depend on the severity of the breach. For example, if a validator proposes two different blocks for the same slot, they could lose up to 1/32 of their staked ETH.
Puffer Finance’s core technology
Secure signer
Secure signer is a technology used in Ethereum staking to help protect validators’ private keys. This technology uses a hardware device to store private keys and sign transactions. The hardware device is designed to resist physical and software attacks, helping to protect private keys from theft.
Secure signer technology is an important part of Ethereum staking, as it helps protect validators from asset loss. If a validator loses their private key, they will not be able to continue validating transactions and will lose all of their staked ETH. Secure signer technology helps mitigate this risk by securely storing private keys and signing transactions using a hardware device.
Secure signer technology is new and still under development, however, it has been proven to be safe and effective. Some of the benefits of Secure signer include:
- Protect private keys from being stolen
- Minimize the risk of slashing
- Enhanced security for validators
- Facilitate Ethereum staking
RAVe
Remote Attestation Verification (RAV) is a technology used in Ethereum PoS to help ensure that validators are authenticating transactions honestly. This technology works by using a network of remote verifiers to verify the claims of validators.
The effects of RAVe include increased security, performance, and scalability.
What is Puffer Finance?
Puffer Finance is a Liquid Staking Derivatives protocol that includes 2 main products for single users and those who want to operate a Node on the Ethereum network.
- For Node Operators: Allows Node Operators to receive ETH from the protocol to deploy a Node on Ethereum PoS. Puffer Nodes can reset to participate in operating AVS on EigenLayer. Just 2 ETH is needed
- For Retail: Called Puffer. Puffers will stake ETH to receive APR and pufETH
Some of the benefits that Puffer Finance brings include increased hardware performance, increased capital efficiency and increased profit margins for those participating in 1 Node deployment. Similar to many other LSD platforms, pufETH will be used in many different DeFi protocols so users can earn more profits.
With Secure signer and RAVe technology, it has made a difference in operating a full Node on Ethereum to ensure the highest security, maximize profits and reduce issues related to slashing.
Development Roadmap
Puffer’s development roadmap is divided into 4 main stages:
- Deposits Live: Testing the inclusion of ETH in the protocol.
- Testnet Launch: Deploy the test network.
- Mainnet Launch: Deploy the official network.
- Verticalized Infastructure: Develop infrastructure to solve network performance and user experience problems.
Core Team
Amir Forouzani: Co Founder & CEO
- Amir holds a Bachelor of Applied Science (BASc.) from Monash University. After that, Amir continued to earn a bachelor’s degree in Science from the University of California and a master’s degree from the University of Southern California.
- In his most prominent working career, Amir worked at Nase for nearly 3 years.
Jason Vranek: Co Founder & CTO
- Jason earned his Bachelor of Science, Master of Computer Science and Engineering, and PhD in Computer Science and Engineering from the University of California.
- Jason doesn’t have much experience as he’s only worked at Chainlink Labs for 2 months.
- Jason’s main time is working at the school he attends as a teaching assistant, tutor, programmer,…
Investor
- January 1, 2023: At the Pree Seed round, Puffer successfully raised $650K with the participation of Jump Capital, IoTex and Arcanum Capital and received a Grant from the Ethereum Foundation.
- August 9, 2023: Puffer successfully called for $5.5M with the participation of Lemniscap, Faction, LBank Labs, SNZ Capital,… besides a number of prominent Angel Investors such as Sreeram Kannan, Calvin Liu from EigenLayer, Frederick Allen from Coinbase, Mr Block from Curve Finance,…
- January 2024: Binance Labs announced investment in Puffer Finance.
Tokenomics
Update…
Exchanges
Update…
Project Information Channel
- Website: https://www.puffer.fi/
- Twitter: https://twitter.com/puffer_finance
- Discord: discord.gg/pufferfi
Summary
Puffer Finance is an extremely potential project in the LSD segment. I believe this project deserves to be on the watchlist of any researcher.