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Puffer Finance, an Ethereum-based liquid staking undertaking constructed on the EigenLayer redraw protocol, has raised $18 million in a Collection A funding spherical led by Brevan Howard Digital and Electrical Capital. The funds shall be used to launch the undertaking’s mainline, marking a major milestone within the growth of Puffer Finance’s liquid staking answer.
The funding spherical noticed the participation of distinguished buyers comparable to Coinbase Ventures, Kraken Ventures, Lemniscap, Franklin Templeton, Constancy, Mechanism, Lightspeed Faction, Consensys, Animoca and GSR, amongst others. Along with the Collection A spherical, Puffer Finance additionally secured a strategic funding from Binance Labs, additional strengthening its place inside the liquid restoration ecosystem.
“Following this spherical, Puffer has secured a strategic funding from Binance Labs, strengthening its place inside the Liquid Restaking ecosystem,” Puffer Finance mentioned in its announcement.
The protocol additionally hinted at coming “technological developments” after the mainnet launch, though the main points of those updates weren’t mentioned.
Puffer Finance’s expertise permits Ethereum validators to decrease their capital requirement from the usual 32 ETH to simply 1 ETH, considerably reducing the barrier to entry for particular person stakers. Moreover, customers who stake Ether by way of Puffer Finance will obtain Puffer liquid restaking tokens (nLRTs), which can be utilized to generate yields in different decentralized finance (DeFi) protocols, concurrently with their Ethereum staking rewards.
Liquid staking, a course of that enables customers to stake their property whereas sustaining liquidity through tradable ERC-20 tokens, has gained recognition amongst Ethereum holders following the community’s transition to proof-of-stake (PoS) consensus . Puffer Finance goals to make liquid staking extra accessible and environment friendly for Ethereum customers.
Knowledge from DeFiLlama reveals that Puffer Finance’s complete Worth Locked (TVL) exceeded $1.2 billion shortly after its early testing section in February, demonstrating robust demand for its liquid staking answer. Thus far, the Protocol has raised a complete of $23.5 million in enterprise capital funding.
Highlighting the purpose of the undertaking, Amir Forouzani, a core contributor at Puffer Labs, mentioned: “We intention to considerably cut back the obstacles for house validators to take part, whereas delivering probably the most superior fluid retrieval protocol.”
The Ethereum liquid staking market has seen super development, with a TVL of over $51 billion, thanks largely to Lido Finance, the biggest liquid staking protocol on Ethereum. As of March 2024, Lido Finance has a TVL of over $11 billion, with over 9.78 million ETH on the platform.
Liquid staking gives a number of advantages to Ethereum customers, together with income diversification, danger mitigation, improved capital effectivity, enhanced community safety and decentralization, and the power to make use of staked property in DeFi functions. By enabling extra contributors to stake their ETH, tasks like Puffer Finance contribute to the general well being and resilience of the Ethereum community.
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