📝 Hello everyone, I am 𝟏𝟎, welcome back to the #Blockchain Development History project research series. Today, we will focus on (Puffer Finance / PUFFER).
The Puffer Finance project is a decentralized liquidity re-staking protocol built on Eigen Layer, where users can provide liquidity and stake ETH to receive pufETH in return.
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1. Overview of the Puffer Finance Project
Puffer Finance is a liquidity re-staking protocol based on Eigen Layer. You can provide ETH to Puffer and not only earn PoS rewards but also generate additional income through Puffer's unique nLRT (native liquidity re-staking token). It's like renting a piece of land to someone to grow crops; in addition to receiving rent each year, you also share in the harvest.
2. Operation Mechanism of Puffer Finance
After users stake ETH, Puffer Finance issues pufETH tokens as liquid staking tokens, which can be used on other DeFi platforms, bringing more profits to stakers.
By using staked ETH as collateral for EigenLayer, users can not only earn ETH staking rewards but also participate in activities that enhance the security of other blockchain ecosystems. This way, validators can leverage their staked ETH to improve capital efficiency without losing their validator identity.
Puffer Finance has significantly lowered the threshold for staking ETH. You only need to stake 1 ETH to participate. Traditional staking platforms may require a higher financial threshold, but Puffer allows more people to easily engage in Ethereum's consensus mechanism.
3. Technical Architecture and Core Components
1. Secure Signing Algorithm (Secure-Signer)
Puffer protects the keys of validators using Secure-Signer technology, which leverages the Trusted Execution Environment (TEE) provided by Intel SGX to prevent hackers from tampering with data or performing double signing, thus avoiding the risk of penalties. It's like placing your valuables in a safe, accessible only to you and trusted security personnel, while outsiders cannot tamper with it.
2. Remote Attestation Verification (RAVe)
So how do we ensure the safety of this safe? This is where the Remote Attestation Verification (RAVe) mechanism comes into play. By verifying the reports generated by Intel SGX, Puffer ensures that each validator's identity and behavior meet standards, thereby ensuring the security of the network.
3. EigenPod
With these security guarantees, you can confidently deposit your ETH into EigenPod, a container provided by EigenLayer that helps you accumulate rewards while ensuring the safety of your funds, much like putting your money into a smart financial tool that not only preserves its value but also increases it.
4. Integration of EigenLayer and Puffer
EigenLayer offers optimized re-staking capabilities, allowing Puffer users to not only stake ETH but also use ETH as collateral for other external modules (such as oracles, sidechains, aggregation protocols, etc.), thereby improving capital efficiency.
5. Validator Tickets
Puffer has also introduced the concept of validator tickets. After stakers purchase tickets, they can run nodes on the platform, ensuring the rights of node operators while providing continuous rewards to stakers.
4. Token Economic Model
The core of the Puffer economic model is the PUFFER token, with a total supply of 1 billion tokens, of which 102.3 million have been issued. The token distribution is as follows: 40% for ecosystem and community incentives (including airdrops and rewards); 26% allocated to investors, to be released over 3 years; 20% allocated to early contributors and advisors, gradually released; 7.5% for the first quarter airdrop, with 65% available immediately and the rest released linearly; 5.5% for the second quarter airdrop, rewards distributed after snapshot; 1% for Ethereum core development funding.
5. Market Performance
According to data from DeFiLlama, Puffer Finance is a leader in Ethereum liquid staking protocols, with a current total locked value (TVL) exceeding $3.117 billion.
Additionally, with the support of investors such as Binance Labs and Jump Crypto, Puffer has raised $23.5 million through multiple rounds of financing, which will be used for the platform's technological development and ecological construction, particularly in the research and development of secure signing tools and decentralized node management.
6. Conclusion
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