Puffer Finance Gathers $18M for Mainnet Launch, Advances in Liquid Restaking Ecosystem
Summary:
Puffer Finance, an Ethereum-based liquid staking initiative, has secured $18 million in a Series A funding round to launch its mainnet with key investments from Brevan Howard Digital, Electric Capital, and others. The Tech developed by Puffer enables Ethereum validators to reduce their capital to just 1 Ether, and offers liquid restaking tokens (nLRTs) for other DeFi protocols. The venture has so far raised a total of $23.5 million in funding and acquired a strategic investment from Binance Labs, marking significant strides in the Liquid Restaking ecosystem.
Ethereum-based liquid staking initiative, Puffer Finance, has garnered $18 million through a Series A fundraising round to launch its mainnet. The funding campaign took place on April 16, with leading contributions coming from Brevan Howard Digital and Electric Capital. Other primary investors included Coinbase Ventures, Kraken Ventures, Lemniscap, Franklin Templeton, Fidelity, Mechanism, Lightspeed Faction, Consensys, Animoca, GSR and multiple individual investors. DeFiLlama data reveals that, following its preliminary testing phase in February, Puffer Finance's total value locked surpassed $1.2 billion. So far, the protocol has accumulated $23.5 million in venture capital.
Post-funding, Puffer Finance announced a strategic partnership with Binance Labs, which further cements its position in the Liquid Restaking universe. The partnership is expected to propel technological advancements that will coincide with its mainnet launch.
Puffer Finance's technology permits Ethereum validators to slash their capital to merely 1 Ether (ETH), a significant reduction from the original 32 ETH required for individual staking. Users staking Ether through Puffer will receive liquid restaking tokens (nLRTs), which can be utilized for yield farming across various decentralized finance protocols, for simultaneous Ethereum staking rewards.
This system of liquid staking is not new and has previously been employed by other blockchains like Cosmos. Only following the Merge upgrade that transitioned the network to proof-of-stake, did it find a footing in Ethereum. "Our aim is to make it substantially easier for home validators to take part in the process while offering the most cutting-edge liquid staking protocol," said Amir Forouzani, a key contributor to Puffer Labs.
Earlier on March 6, reports indicated that EigenLayer had surpassed rival DeFi lending protocol Aave in total value locked (TVL), with values reaching $10.4 billion as a result of lifting a cap on maximum staking amounts.
Data from Dune Analytics indicates that EigenLayer has more than 107,900 unique depositors. DefiLlama stats display that 74% of staked tokens comprise of Wrapped Ether (wETH) and stETH. Currently, liquid staking protocols represent the largest DeFi protocol segment with almost $55 billion in locked value across roughly 160 protocols, primarily led by Lido, boasting the highest locked value protocol at $35 billion.
Published At
4/16/2024 1:00:00 PM
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