📝 Hello everyone, I am 𝟏𝟎, welcome back to the #BlockchainDevelopmentHistory 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, allowing users to provide liquidity and stake ETH to receive pufETH as a reward.
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One, Overview of the Puffer Finance Project
Puffer Finance is a liquidity re-staking protocol based on Eigen Layer. You can provide ETH to Puffer, earning PoS rewards and additionally earning extra returns through Puffer's unique nLRT (native liquidity re-staking token). It's like renting out a piece of land for someone to farm; besides receiving rent annually, you can also share in the harvest.
Two, The Operating Mechanism of Puffer Finance
After users stake ETH, Puffer Finance issues pufETH tokens as liquidity staking tokens, which can be used on other DeFi platforms, bringing more rewards to stakers.
By using staked ETH as collateral for EigenLayer, users can not only earn ETH staking rewards but also participate in security enhancement activities across other blockchain ecosystems. This way, validators can improve capital utilization efficiency without losing their validator identity.
Puffer Finance significantly lowers the threshold for staking ETH. You only need to stake 1 ETH to participate. Traditional staking platforms may require a higher capital threshold, but Puffer allows more people to easily engage in Ethereum's consensus mechanism.
Three, Technical Architecture and Core Components
1、 Security Signature Algorithm (Secure-Signer)
Puffer uses the trusted execution environment (TEE) provided by Intel SGX, through Secure-Signer technology, to protect the keys of validators, preventing hackers from tampering with data or performing double signing, thereby avoiding penalty risks. It's like putting your valuables in a safe, accessible only to you and trusted security personnel, and outsiders cannot tamper with it.
2、 Remote Verification Confirmation (RAVe)
So how do we ensure the security of this safe? This is where the Remote Verification Confirmation (RAVe) mechanism comes into play. By verifying the reports generated by Intel SGX, Puffer ensures that each validator's identity and behavior meet standards, ensuring the network's security.
3、 EigenPod
With these security guarantees, you can safely deposit your ETH into EigenPod, a container provided by EigenLayer that helps you accumulate rewards while ensuring the safety of your funds, just like putting your money into a smart financial tool that not only preserves value but also appreciates.
4、 Integration of EigenLayer and Puffer
EigenLayer provides optimized re-staking functionality, 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 utilization efficiency.
5、 Validator Ticket
Puffer also introduces the concept of validator tickets. After staking, users can run nodes on the platform, ensuring the rights of node operators while providing ongoing rewards to stakers.
Four, 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. Token distribution is as follows: 40% for ecological and community incentives (including airdrops and rewards); 26% allocated to investors, released over 3 years; 20% allocated to early contributors and advisors, gradually released; 7.5% for the first season airdrop, with 65% available for immediate withdrawal and the rest released linearly; 5.5% for the second season airdrop, with rewards distributed after the snapshot; 1% for Ethereum core development funding.
Five, Market Performance
According to DeFiLlama data, Puffer Finance remains at the forefront of the Ethereum liquid staking protocol, 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. This funding will be used for the platform's technical development and ecological construction, particularly in the R&D of security signature tools and decentralized node management.
Six, The Tail
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