What is Puffer Finance (PUFFER)?
Puffer Finance is a decentralized platform built on EigenLayer designed to enhance the scalability and functionality of Ethereum through restaking and rollups. It stands out for its security and lowers the barriers to entry for blockchain participation, while also increasing opportunities to generate returns.
Puffer allows anyone to become a validator on the Ethereum network with less than 2 ETH. This reduces obstacles for those who want to stake and those who want to promote a decentralized security system. It offers slash protection with advanced technology and allows validators to earn more by restaking ETH for additional rewards. Stakers can earn income from Ethereum's Proof of Stake and perform restaking without managing their own validators.
The Puffer ecosystem consists of Puffer LRT (Liquid Restaking Token) and the UniFi product suite, which includes UniFi AVS and UniFi operating on Rollup, with the following highlights:
Based Rollups: UniFi Rollup leverages Ethereum's existing validator system, aligning with Ethereum's security and decentralization principles.
L2 Execution Preconfs: Near-instant transaction confirmations from Based Rollup operations enhance the user experience.
Liquid Restaking: Puffer LRT enables more capital-efficient and flexible staking options.
Novel Governance: The vePUFFER model introduces a unique governance approach that balances long-term participation with community flexibility.
Ecosystem Synergy: The product suite (LRT, AVS, Rollup) can work together to address Ethereum's scaling and fragmentation challenges.
Puffer Protocol – Image Source Puffer Docs
The People Behind Puffer's Development
Puffer Finance was founded by a team of blockchain experts and Ethereum enthusiasts. The team has experience in blockchain scaling, with a focus on improving Ethereum's infrastructure. Puffer has collaborated with key figures in the Ethereum community, including Justin Drake, to develop innovations such as anti-slashers for the staking industry.
Puffer Finance has 2 founders:
Amir Forouzani is Co-Founder & CEO.
Jason Vranek is Co-Founder & CTO.
What is the PUFFER token?
PUFFER is the native governance token used throughout the Puffer Protocol and UniFi ecosystem. In addition to serving as a reward for validators and stakers, it also plays a key role in fee management and governing returns within the ecosystem.
Roles of the PUFFER token:
Puffer Liquid Restaking Token (LRT): Controls core protocol parameters such as fees, sets limits, selects operators and restaking providers, manages supported AVSs (presumably, Application Validation Services), and helps allocate ETH to various operators and AVSs.
UniFi AVS: Manages the fee structure, whitelists new AVSs for support, and oversees AVS security parameters.
UniFi Rollup: Sets fees for transactions on the rollup, provides ecosystem rewards to encourage adoption, manages the treasury for long-term sustainability, and governs feature upgrades.
vePUFFER: This is a voting escrow token for governance. It's an ERC-721 token developed in collaboration with Aragon. This mechanism is designed to align with Puffer's long-term goals of fostering committed and value-driven participants in the ecosystem.
PUFFER Allocation
Puffer has a total supply of 1,000,000,000 tokens.
Puffer Tokenimic – Image Source Puffer Medium
Ecosystem and Community 40%: Allocated to initiatives that build a thriving and engaged ecosystem, reward community support, and ensure continued growth. This reserve will fund future airdrops, community incentives, and initial liquidity on exchanges.
Airdrop Season 1 7.5%: Dedicated to the "Crunchy Carrot Quest Season One" airdrop to reward early Puffer supporters from campaigns and for bulk depositors. A portion was distributed immediately, with the remainder vesting over 6 months to ensure fair participation opportunities for all community members.
Airdrop Season 2 5.5%: Allocated to the "Crunchy Carrot Quest Season Two" airdrop, which started after the Season 1 snapshot on October 5th.
Investors 26%: This portion provides resources and support to Puffer for building exceptional products for the community. Investors will have their allocation vest over 3 years, with a 1-year cliff and a 2-year vesting period.
Early Contributors & Advisors 20%: For Puffer's core team and advisors who are dedicated to Puffer's success. This allocation vests over 3 years with a 1-year cliff to ensure the long-term sustainability of the ecosystem.
Protocol Guild 1%: A "Protocol Guild Pledge" of the total PUFFER supply to support core development on the Ethereum network. This allocation vests over 4 years. This support will enhance Ethereum's security and scalability, benefiting the overall ecosystem.
Interesting Price Information for PUFFER
According to data from CoinMarketCap on 7 March 2025, PUFFER had a market capitalization of $26,919,256, equivalent to approximately 905,943,981 THB.
At the time of writing this article, the PUFFER token was trading at around $0.2631, or approximately 8.85 THB per token. PUFFER previously reached its all-time high price of $0.9975, or about 33.59 THB per token, on 7 December 2024.
References: Puffer Docs, Puffer Medium, Tracxn Technologies, CoinMarketCap
Disclaimer:
- Cryptocurrency and digital tokens involve high risks; investors may lose all investment money and should study information carefully and make investments according to their own risk profile.
- Past Returns do not guarantee future returns/performance.
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