Digital Currency News >PUFFER > Puffer Token: Reinventing Ethereum’s Decentralized Staking Experience

Related Articles

ViewPUFFERAll Articles
0
PUFFER
0
Step 1: Enter the PUFFER/USDT spot trading page
0
Step 2: Enter the order unit and quantity, then click Buy/Sell

Puffer Token: Reinventing Ethereum’s Decentralized Staking Experience

2024-10-15 18:17:09

What is Puffer?Puffer is a decentralized native Liquidity Re-Staking Protocol (nLRP) built on Eigenlayer. This innovative protocol makes it easier to natively re-stake on Eigenlayer, allowing anyone to run an Ethereum Proof-of-Stake (PoS) validator and be able to increase their rewards.


What does Puffer bring?

Protocol features:Permissionless: Anyone can run a validator on Puffer, making participation more universal.

Native re-staking: Puffer is the first native liquid re-staking protocol on Eigenlayer, providing users with unprecedented flexibility.

Philosophical Consistency: The protocol limits itself to protect the Ethereum ecosystem.

Explosive growth: The value of pufETH can still grow even if validator queue times are long.

NoOps features

Capital efficiency: The capital required to run a validator is less than 2 ETH, lowering the barrier to entry.

Anti-cut protection: Puffer provides the first anti-cut hardware support to ensure the safety of user capital.

MEV autonomy: No operator can choose his or her own MEV strategy to further increase profits.


Reward mechanism

Liquid staking: Anyone can stake any amount of ETH and enjoy liquidity.

Heavy Staking Rewards: Get super rewards through integration with Eigenlayer.

Validator Tickets: Align operatorless incentives, smooth the MEV process, and create new markets.

Liquid rewards: Operator-less execution rewards can be liquidated immediately.

Buy & Hold: Earn PoS and re-staking rewards without running a validator.

Puffer's flywheel effect: Puffer's operation relies on collaboration between stakers and no operators (NoOps), forming a flywheel effect that enables Puffer to grow faster than traditional liquid staking protocols. To ensure that Puffer does not pose a threat to Ethereum’s trusted neutrality, Puffer’s burst threshold limits it to 22% of the validator set.

Non-operators can join any Puffer module by locking validator tickets and 1 ETH as collateral. In return, they can run a validator for 32 ETH and keep 100% of the PoS rewards until they run out of tickets. Non-operators can also entrust the validator's ETH to the heavy-staking operator by joining the heavy-staking module, thereby receiving commissions from the heavy-staking rewards.

Stakers can then deposit any amount of ETH to support the protocol’s 32 ETH operator-controlled validators. In return, they will receive pufETH native liquid heavily-staking tokens (nLRT), which will continue to grow in value as the protocol issues validator tickets and earns re-staking rewards.


Reasons to become a non-operator

Anyone with less than 2 ETH can run their own validator, earning sustainable PoS rewards while helping decentralize Ethereum. No-operators can gain exposure to heavy collateral without requiring 32 ETH, earning more than running validators alone.

Best for Capital Efficiency: Puffer has the best capital efficiency among permissionless liquid staking protocols, and this extends to heavy staking as well. No-operators are entitled to 100% of validator execution rewards, meaning they can decide their own MEV strategy, which helps strengthen Ethereum’s censorship resistance and can be very profitable in some cases.

Non-operators can also receive 100% of the validator consensus reward, which means that their validator profitability depends entirely on themselves, further incentivizing them to improve operational efficiency.


Summarize

The launch of the Puffer token not only brings innovation to Ethereum’s staking ecosystem, but also provides users with unprecedented flexibility and profit opportunities. Through the decentralized native liquid-heavy pledge protocol, Puffer enables every user to easily participate in the development of Ethereum and enjoy considerable rewards. As Puffer continues to grow, Ethereum will be more decentralized and prosperous in the future.

Disclaimer:

1. The information does not constitute investment advice, and investors should make independent decisions and bear the risks themselves

2. The copyright of this article belongs to the original author, and it only represents the author's own views, not the views or positions of HiBT