Introduction to Puffer Finance, the LRT re-pledging project, and the launch of its marketing campaign ahead of the mainnet!

With the rapid development of the Puffer Finance project, which involves the pledge of liquid tokens (LRT), the project has attracted market attention through its reduced validator threshold, unique ticket design, and integration with EigenLayer to enhance participant returns. Yesterday, it also announced a new event allowing anyone to pledge LST, with a TVL exceeding $100 million on the first day.

Table of Contents:
Toggle
Introduction to Puffer Finance
Highlights of Puffer Finance: Low Threshold for Validators
Liquidity Pledge: Filling the Gap for ETH
Validator Tickets
Liquidity Re-pledge: Combining with EigenLayer to Increase Returns
Puffer Finance Marketing Activities
Crunchy Carrot Event: Seizing the Narrative of Re-pledging
Crunchy Carrot Pledge Tutorial

Puffer Finance aims to enable anyone to operate a node on the Ethereum network as Node Operators (NoOps), reducing the validator threshold from 32 ETH to 1 to 2 ETH.

Maintaining a minimum threshold instead of zero cost is to ensure that validators bear the risk of penalty reduction due to software and hardware errors. If they are willing to run Puffer’s anti-slasher protection program, they can provide just 1 ETH.

By running a node on Puffer, participants can receive 100% execution and consensus rewards from the Ethereum PoS mechanism without any transaction fees.

Who provides the remaining ETH? Puffer Finance provides a channel for other users to pledge any amount of ETH and provide the remaining ETH. There are corresponding protection measures to enhance the security of the assets pledged.

As an exchange, pledgers can receive pufETH tokens with accumulating value and accumulate earnings from validator tickets.

To become a validator, one needs to pledge 1 to 2 ETH and purchase validator tickets daily.

The price of validator tickets is determined based on the validator’s expected daily income and provides discounts to incentivize node purchases. The income will go into the treasury for ETH pledgers (pufETH holders), and thus, the price will directly affect the expected annual interest rate of accumulated pufETH value. Before EigenLayer re-pledging goes live, selling validator tickets is the only source of rewards for pufETH.

Puffer Finance utilizes the validator ticket mechanism to provide earnings to ETH pledgers.

Using validator tickets can reduce the threshold for validators to hold assets in the long term and increase the flexibility of adjustment strategies. For pledgers, it allows them to receive rewards earlier.

Additionally, Puffer Finance has a pledge limit to protect the decentralization of Ethereum. If the number of validators built on Puffer Finance exceeds 22% of the total Ethereum pledge, the minting of validator tickets will be reduced to ensure that it never exceeds 33%, thereby ensuring the decentralization and security of Ethereum.

In the future, validators can further deposit ETH into EigenLayer to receive more rewards while taking on more risks. These rewards can also increase the returns for ETH pledgers.

Puffer Finance has many advisors from the EigenLayer project team, including founder Sreeram Kannan and Strategy Director Calvin Liu. This close collaboration has given Puffer Finance significant market exposure and attention.

Currently, the mainnet of Puffer Finance is still under development, and most of the mentioned features have not been activated. However, the team has seized the market’s enthusiasm for the narrative of re-pledging and launched the Crunchy Carrot event.

To encourage users to deposit stETH and wstETH into Puffer Finance, the contract will automatically pledge them to EigenLayer, allowing users to earn both EigenLayer points and Puffer points.

To participate in the Puffer Finance event, users can visit the registration page, link their wallet and Twitter account, and choose a team to join.

Next, users will see the familiar pledging interface for tokens such as stETH. This event accepts stETH and wstETH, and users can complete the deposit after authorizing the use of tokens.

Currently, Puffer Points are calculated based on the quantity of tokens deposited, with 1 stETH equal to 10,000 Puffer Points, which determines the ranking in the event.

Crunchy Carrot
EigenLayer
LRT
LSD
LST
Puffer Finance

Further Reading:
EigenLayer Removes Pledge Pool Limits and Will Reopen Pledge Window
AltLayer Airdrops 300 Million ALT Tokens in Q1, Official NFT Holders and Re-pledging Users Qualify.