{"id":"puffer","hidden":false,"ipfs":"QmdatowLcv8sMnZxBrsr2MiEuAotVv3fMbhDpgSQX2adpa","language":"en","transactionHash":"0xffba46625509fd7de247ff969900705c94c4f84b71089fc05223cedc5c1d01b2","created":"2024-07-16T08:01:50.280Z","updated":"2024-07-18T16:34:27.079Z","title":"Puffer","summary":"Puffer is a decentralized native liquid restaking protocol on Eigenlayer, enabling secure, simplified Ethereum PoS validator operations with Anti-Slashing and S...","content":"**Puffer** is a decentralized native liquid restaking protocol (nLRP) developed on [Eigenlayer](https://iq.wiki/wiki/eigenlayer). It aims to simplify native restaking on [Eigenlayer](https://iq.wiki/wiki/eigenlayer), enabling users to operate [Ethereum](https://iq.wiki/wiki/ethereum) [Proof of Stake (PoS)](https://iq.wiki/wiki/proof-of-stake) [validators](https://iq.wiki/wiki/validator) and potentially increase their rewards.[\\[1\\]](#cite-id-uqlkkuv677r)​\n\n## Overview\n\nPuffer Finance is a decentralized native liquid restaking protocol built on [Ethereum](https://iq.wiki/wiki/ethereum) and integrated with [EigenLayer](https://iq.wiki/wiki/eigenlayer), enabling users to stake [ETH](https://iq.wiki/wiki/ether-eth) and receive pufETH, a liquid restaking token that provides exposure to both [proof-of-stake](https://iq.wiki/wiki/proof-of-stake) and restaking rewards. The protocol lets [node](https://iq.wiki/wiki/node) operators, known as NoOps, run 32 [ETH](https://iq.wiki/wiki/ether-eth) [validators](https://iq.wiki/wiki/validator) with 2 [ETH](https://iq.wiki/wiki/ether-eth) in collateral and Validator Tickets, while retaining their [validators](https://iq.wiki/wiki/validator)’ execution and consensus rewards. Validator Tickets contribute to the protocol’s reward distribution, while pufETH holders can use their tokens across [decentralized finance](https://iq.wiki/wiki/defi) applications. Puffer incorporates anti-slashing hardware support, [validator](https://iq.wiki/wiki/validator) ejection mechanisms, and restrictions on approved Actively Validated Services (AVSs) and restaking operators to manage protocol risks. It also uses a burst threshold that caps its share of [Ethereum’s](https://iq.wiki/wiki/ethereum) [validator](https://iq.wiki/wiki/validator) set at 22%, aiming to limit [validator](https://iq.wiki/wiki/validator) concentration and preserve network decentralization. [\\[1\\]](#cite-id-uqlkkuv677r) \n\n![](https://ipfs.everipedia.org/ipfs/QmPumjzqo3tywiZSu8w4n3WJhhjxU5a5SGEHtDSC89S8Cj)\n\n## Products\n\n### UniFi Rollup\n\nPuffer UniFi is an [Ethereum](https://iq.wiki/wiki/ethereum) [Layer 2](https://iq.wiki/wiki/layer-2) rollup built on the OP Stack that uses [Ethereum](https://iq.wiki/wiki/ethereum) [validators](https://iq.wiki/wiki/validator) to sequence transactions instead of relying on a centralized sequencer. It aims to reduce liquidity fragmentation across [Layer 2](https://iq.wiki/wiki/layer-2) networks, support atomic composability between [Ethereum](https://iq.wiki/wiki/ethereum) and [Layer 2](https://iq.wiki/wiki/layer-2), and direct a portion of sequencing fee revenue to [Ethereum](https://iq.wiki/wiki/ethereum) [validators](https://iq.wiki/wiki/validator). UniFi supports 50-millisecond transaction preconfirmations and uses Trusted Execution Environment (TEE) proofs to enable withdrawals to [Ethereum](https://iq.wiki/wiki/ethereum) in minutes rather than the standard seven-day dispute period. Its Signal Service enables synchronous operations between [Layer 1](https://iq.wiki/wiki/layer-1) and [Layer 2](https://iq.wiki/wiki/layer-2) within the same slot. The network is mostly [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm)-equivalent, allowing developers to use familiar [Ethereum](https://iq.wiki/wiki/ethereum) development tools and frameworks such as Hardhat, Truffle, and Remix.  [\\[20\\]](#cite-id-tTeVoV0whmWORxFK) \n\n### Puffer Preconf\n\nPuffer Preconf is an [EigenLayer](https://iq.wiki/wiki/eigenlayer)-based preconfirmation service that lets [Layer 2](https://iq.wiki/wiki/layer-2) [rollups](https://iq.wiki/wiki/rollup) offer transaction execution preconfirmations in about 100 milliseconds, with economic security backed by restaked [ETH](https://iq.wiki/wiki/ether-eth). Built on [EigenLayer](https://iq.wiki/wiki/eigenlayer) and integrated with Commit-Boost, the protocol uses a gateway-based architecture in which [Ethereum](https://iq.wiki/wiki/ethereum) [validators](https://iq.wiki/wiki/validator) delegate to gateways that provide preconfirmation services, with a lookahead mechanism coordinating sequencing rights for upcoming [Ethereum](https://iq.wiki/wiki/ethereum) slots. Unlike inclusion preconfirmations, which confirm that a transaction will be included in a block, execution preconfirmations commit to the transaction’s specified execution outcome. The protocol supports permissionless participation by [validators](https://iq.wiki/wiki/validator), gateways, and [Layer 2](https://iq.wiki/wiki/layer-2) networks without requiring a Puffer [governance token](https://iq.wiki/wiki/governance-tokens), and uses cryptographically signed commitments, slashing mechanisms, and refunds for certain failed preconfirmations to address misbehavior and user losses. Its economic model splits preconfirmation fee revenue between [validators](https://iq.wiki/wiki/validator) and [rollup](https://iq.wiki/wiki/rollup) operators, while Puffer UniFi is one implementation of the service. The initial deployment supports OP-based [rollups](https://iq.wiki/wiki/rollup) and includes the Gattaca gateway, with plans to expand gateway participation, rollup compatibility, and slashing functionality. [\\[21\\]](#cite-id-LRGMyAYAjNd9uCa3) \n\n### Puffer Institutional\n\nPuffer Institutional is a [staking](https://iq.wiki/wiki/staking) and restaking platform designed for organizations managing [ETH](https://iq.wiki/wiki/ether-eth) through traditional [Ethereum](https://iq.wiki/wiki/ethereum) [staking](https://iq.wiki/wiki/staking) and [EigenLayer’s](https://iq.wiki/wiki/eigenlayer) restaking infrastructure. Its architecture consists of an AccessManager [smart contract](https://iq.wiki/wiki/smart-contract) for permissions and upgrade control, a Vault contract for managing assets, [validators](https://iq.wiki/wiki/validator), and reward distribution, and a Restaking Operator account responsible for registering with Actively Validated Services (AVSs) and coordinating restaking rewards. Institutions can configure operational permissions, manage validator deployments through a designated Guardian account, and deposit [ETH](https://iq.wiki/wiki/ether-eth) or [WETH](https://iq.wiki/wiki/weth-wrapped-eth) to receive [ERC-4626](https://iq.wiki/wiki/erc-4626)-compliant institutional share tokens. Traditional [staking](https://iq.wiki/wiki/staking) rewards and restaking rewards are handled separately, with restaking rewards accumulating in EigenPods before being delegated to the Restaking Operator for participation in AVSs. [Validator](https://iq.wiki/wiki/validator) operations include 32 [ETH](https://iq.wiki/wiki/ether-eth) deposits and controlled exit procedures, while the platform’s security framework incorporates access controls, [EigenLayer](https://iq.wiki/wiki/eigenlayer) infrastructure, and [smart contract](https://iq.wiki/wiki/smart-contract) audits by BlockSec and SpearBit. The system lets institutions manage [staking](https://iq.wiki/wiki/staking) and restaking allocations to match their operational needs and risk preferences while retaining control over validator management and reward strategies.  [\\[22\\]](#cite-id-FDt04yRisGPsAGzG) \n\n## Puffer Token ($pufETH)\n\npufETH is a reward-bearing [ERC20](https://iq.wiki/wiki/erc-20) token designed for compatibility with [decentralized finance (DeFi)](https://iq.wiki/wiki/defi), inspired by [Compound's](https://iq.wiki/wiki/compound) cToken. It offers a dual-source reward system that combines [Ethereum](https://iq.wiki/wiki/ethereum) [Proof of Stake (PoS)](https://iq.wiki/wiki/proof-of-stake) rewards with earnings from restaking services, potentially outperforming traditional liquid staking tokens (LSTs). The token uses [validator](https://iq.wiki/wiki/validator) tickets to enhance value growth by frontloading [PoS](https://iq.wiki/wiki/proof-of-stake) rewards, encouraging participation. Unlike LSTs, pufETH decouples rewards from validator performance, ensuring stable returns. pufETH integrates seamlessly within the LSDeFi ecosystem, allowing users to access restaking rewards directly by holding the token, thus maximizing the utility of their staked assets.[\\[6\\]](#cite-id-4dyduhf7h24)​\n\n## Funding\n\nPuffer has raised a total of $23.5 million through two funding rounds to support its development within the [Ethereum](https://iq.wiki/wiki/ethereum) ecosystem. The initial $5.5 million seed round, co-led by Lemniscap and Lightspeed Faction, aims to improve the viability of home stakers and promote decentralization through anti-slashing technology. Subsequently, Puffer secured $18 million in a Series A round led by Brevan Howard Digital and Electric Capital to facilitate the launch of the Puffer Mainnet and reduce the entry threshold for [validators](https://iq.wiki/wiki/validator). These funding rounds involved various aligned investors and community funds, reflecting a commitment to the objectives of the Puffer protocol and the [liquid staking](https://iq.wiki/wiki/liquid-staking) market.[\\[16\\]](#cite-id-lx8ir6lgah)​[\\[17\\]](#cite-id-4lra1jtb7jp)​\n\n![](https://ipfs.everipedia.org/ipfs/QmeN5Hh3u7XcMWpJ7MSrPm1W4NJkwTD51JC7gS8h3VHZn3)\n","recentActivity":null,"operator":{"id":"0xacb6c5AD52b8f605299B0d774CE97F26e3DB80c2"},"categories":[{"id":"projects-and-protocols","title":"Projects & Protocols"}],"tags":[{"id":"DeFi"},{"id":"Infrastructure"},{"id":"Layer2"}],"images":[{"id":"QmcKNfN3ESnRekFQ49iTPMdZja5N3QM2w36wQ1qwxRTgVa","type":"image/jpeg, image/png"}],"media":[{"name":"N3h9cRjJI7o","id":"https://www.youtube.com/watch?v=N3h9cRjJI7o","size":"0","type":null,"source":"YOUTUBE"},{"name":"PufferProtocol-90ac8dc6bee77025247c9873cd53649d.png","id":"QmPumjzqo3tywiZSu8w4n3WJhhjxU5a5SGEHtDSC89S8Cj","size":"0.51","type":"GALLERY","source":"IPFS_IMG"},{"name":"PufferModule-303be81790d75a687e501ceac0197b02.png","id":"QmbjHTwWbrzGAH44fkMVaZrRc1653pyYQ5CHBCeo7qsMKL","size":"0.59","type":"GALLERY","source":"IPFS_IMG"},{"name":"mint-vt-3e5e230782e53dd275a5ee25e65a8e0a.png","id":"QmNuCtfgf71BKHtpQjN35UdsRPBEbTmfEckMTqtyck4aDJ","size":"0.10","type":"GALLERY","source":"IPFS_IMG"},{"name":"mevboost-c228df199c1eede83d53c31b8e81f5bc.png","id":"QmZPmuwHsmGZrJMBbtFYaRYot1eQbLZBbg5fDysMBSe7K1","size":"0.20","type":"GALLERY","source":"IPFS_IMG"},{"name":"1*KvNjia9U16Ucp1x9QbtNww.webp","id":"QmeN5Hh3u7XcMWpJ7MSrPm1W4NJkwTD51JC7gS8h3VHZn3","size":"0.12","type":"GALLERY","source":"IPFS_IMG"},{"name":"1*0rjNy86OXJAL3jcXEbLMcA.webp","id":"QmXKMAAY92hwcKmhVvUbhUwDr12nYkcB5Cd136484WHRsR","size":"0.15","type":"GALLERY","source":"IPFS_IMG"}],"linkedWikis":{"founders":["amir-forouzani","jason-vranek"],"blockchains":[],"speakers":[]},"events":[{"type":null,"date":"2022-11-01","multiDateStart":null,"multiDateEnd":null,"country":null,"continent":null,"title":"Puffer was founded","description":"Puffer was founded by Amir Forouzani","link":"https://www.linkedin.com/in/amir-forouzani-995a86a2/","id":"b9083397-cd0b-491b-8baa-769d32acb2a8"},{"type":null,"date":"2024-05-01","multiDateStart":null,"multiDateEnd":null,"country":null,"continent":null,"title":"Mainnet Launch","description":"Puffer Mainnet was launched","link":"https://medium.com/puffer-fi/welcome-to-puffer-mainnet-685eefd59698","id":"584d455d-35d6-4479-bb6e-6137a03e1b87"}],"founderWikis":[],"blockchainWikis":[],"metadata":[{"id":"references","value":"[{\"id\":\"uqlkkuv677r\",\"url\":\"https://docs.puffer.fi\",\"description\":\"docs - Introduction\",\"timestamp\":1721110809711},{\"id\":\"ohfhad05q2g\",\"url\":\"https://defillama.com/protocol/puffer-finance#information\",\"description\":\"defilama - Puffer\",\"timestamp\":1721111652855},{\"id\":\"p75edktmcj\",\"url\":\"https://medium.com/puffer-fi/puffer-finance-making-a-splash-in-the-lst-market-723b36a748c8\",\"description\":\"medium - Puffer Finance\",\"timestamp\":1721111673983},{\"id\":\"qx4m16h487m\",\"url\":\"https://tracxn.com/d/companies/puffer-finance/__nUcgl7Eu9BVqpj1KWM9JsidciTWyK4me-4EoCQphjAg\",\"description\":\"tracxn - Puffer FInance\",\"timestamp\":1721111693262},{\"id\":\"9m5eiruv4p\",\"url\":\"https://www.linkedin.com/in/amir-forouzani-995a86a2/\",\"description\":\"linkedin - Amir Forouzani\",\"timestamp\":1721111710200},{\"id\":\"4dyduhf7h24\",\"url\":\"https://docs.puffer.fi/protocol/nlrt\",\"description\":\"docs - token pufETH\",\"timestamp\":1721112447311},{\"id\":\"jv79n81g8f9\",\"url\":\"https://docs.puffer.fi/protocol/puffer-modules\",\"description\":\"docs - 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