Apr 16, 2024 at 05:17Puffer Finance, an Ethereum-based liquid staking platform utilizing the Eigenlayer restaking protocol, has successfully concluded its Series A funding round, securing $18 million to propel its mainnet launch. Leading the investment were Brevan Howard Digital and Electric Capital, alongside prominent backers like Coinbase Ventures, Kraken Ventures, Lemniscap, and others.
The project achieved a significant milestone when its total value locked (TVL) soared past $1 billion within just one month of its testnet debut, according to data from DefiLlama. This swift rise in TVL underscores investor confidence in Puffer Finance’s innovative approach to liquid staking.
With a total of $23.5 million in venture capital funding to date, Puffer Finance announced a strategic investment from Binance Labs, signaling its commitment to advancing liquid restaking technology in conjunction with its mainnet launch.
Puffer Finance’s platform enables Ethereum validators to stake with as little as 1 Ether, a stark reduction from the standard 32 Ether requirement for individual stakers. Additionally, users receive Puffer liquid restaking tokens (nLRTs) for their staked Ether, which can be utilized to generate yields in other DeFi protocols simultaneously.
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The adoption of liquid staking on Ethereum marks a significant shift, following the network’s transition to proof-of-stake through the Merge upgrade. Amir Forouzani, core contributor at Puffer Labs, emphasized the project’s goal of democratizing participation in staking while offering cutting-edge liquid restaking solutions.
Recent data indicates Eigenlayer’s growing prominence, with over 107,900 unique depositors and a substantial portion of staked tokens represented by Wrapped Ether (wETH) and Lido Staked Eth (stETH). Liquid staking protocols, now the largest DeFi category with nearly $55 billion in locked value across approximately 160 protocols, continue to gain traction, driven primarily by pioneers like Lido.
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