Puffer Finance is a decentralized protocol built on EigenLayer, a platform that supports the expansion of the Ethereum network. This protocol allows users to run Ethereum validators with smaller capital, namely only 2 ETH.
This is certainly smaller than the 32 ETH standard currently applied. This opens up opportunities for more people to participate in the security of the Ethereum network and earn returns without major obstacles.
In addition to lowering the participation threshold, Puffer Finance also offers protection against penalty risks ( slash protection ) through advanced technology.
With this, the platform guarantees the security of validators while maximizing capital efficiency, so that users can continue to earn rewards from staking and restaking activities.
How Does Puffer Finance (PUFFER) Work?
Puffer Finance operates through three main components. The following is the complete explanation:
1. Liquid Restaking
In traditional staking systems, ETH staked by validators is locked as collateral and cannot be used for other activities. Puffer Finance solves this problem by introducing the concept of liquid restaking .
Where, ETH that has beenstake can be converted into pufETH. This token can then be used in various DeFi protocols without having to release the initial stake.
2. UniFi-Based Rollups
Puffer Finance uses UniFi-based rollupsto process transactions more quickly and efficiently. This rollup technology allows bundling transactions in one large package that is processed sequentially off chainand sent to the Ethereum main network as a single transaction.
In this way, gas fees are drastically reduced and transaction confirmations can be done almost instantly.
3. UniFi Preconf AVS
The UniFi AVS service allows validators to provide transaction confirmation in less than 100 milliseconds. Validators who join the service can earn additional rewards, while ensuring that the Ethereum network remains safe and efficient.
What Is $PUFFER Coin?
$PUFFER coin is the native crypto asset in the Puffer Finance ecosystem. In addition to serving as a reward for validators and staking participants, $PUFFER also plays a role in driving platform adoption and growth.
This token strengthens the ecosystem by incentivizing active users in staking, restaking, and participation in AVS services.
Key Features of Puffer Finance
Puffer Finance offers a number of excellent features that make it unique. Follow the explanation below to find out:
- Liquid Restaking Token (nLRT): Puffer introduces pufETH, a staking token that allows users to earn returns not only from staking, but also from restaking via EigenLayer.
- Low Entry Threshold: Validators only need 2 ETH to participate, as opposed to the standard 32 ETH. This encourages more users to take part in network security.
- Unauthorized Participation: The platform adopts a decentralized approach where anyone can join without permission or authorization.
- Technology Secure-Signer: This tool works like a hardware wallet, guaranteeing that validators only sign secure transactions and avoiding the risk of penalties.
- Validator Tickets: This validator ticket concept allows users to obtain the right to run an Ethereum validator with full rewards for one day.
- Burst Threshold Mechanism: To maintain Ethereum's stability, Puffer limits its market share to 22% of total validators.
How to Get Puffer Finance Airdrop (PUFFER)
Currently, Puffer Finance has not officially announced the token airdrop. However, users can prepare themselves through participation in the following activities:
1. UniFi Quest #4 by Galxe
Users can take part in this quest to earn points by liking and retweeting Puffer content on the X platform (formerly Twitter). Additionally, users must take quizzes about UniFi to earn additional points.
2. Puffy's Crunchy Carrot Quest Chapter 4
In this quest, users can connect their digital wallet and start staking ETH on the Puffer platform. Additionally, users can also earn more points by providing liquidity on various partner protocols.
Conclusion
Puffer Finance presents an innovative solution in the Ethereum staking ecosystem by removing participation barriers and increasing capital efficiency.
With features like liquid restaking , UniFi rollups , and Secure-Signer technology, Puffer Finance offers a new, more inclusive way to contribute to the security of the Ethereum network.
Users can take advantage of activities like UniFi Quest and Puffy's Crunchy Carrot Quest to earn points and prepare for the official launch of the $PUFFER airdrop or token in the future.
With a focus on accessibility, security, and competitive rewards, Puffer Finance has the potential to become a major player in the world of Ethereum staking.
That's a review of what Puffer Finance and the $PUFFER coin are. Hopefully it's useful, OK!
