Puffer Finance secures $18M in funding as liquid staking market heats up

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Puffer Finance, an Ethereum-based liquid staking mission constructed on the EigenLayer restaking protocol, has raised $18 million in a Sequence A funding spherical led by Brevan Howard Digital and Electrical Capital. The funds will likely be used to launch the mission’s mainnet, marking a major milestone within the improvement of Puffer Finance’s liquid staking resolution.

The funding spherical noticed participation from outstanding traders akin to Coinbase Ventures, Kraken Ventures, Lemniscap, Franklin Templeton, Constancy, Mechanism, Lightspeed Faction, Consensys, Animoca, and GSR, amongst others. Along with the Sequence A spherical, Puffer Finance additionally secured a strategic funding from Binance Labs, additional enhancing its place inside the liquid restaking ecosystem.

“Following this spherical, Puffer secured a strategic funding from Binance Labs, enhancing its place inside the Liquid Restaking ecosystem,” Puffer Finance acknowledged in its announcement.

The protocol additionally hinted at forthcoming “technological developments” after its mainnet launch, though the specifics of those updates weren’t mentioned.

Puffer Finance’s expertise allows Ethereum validators to scale back their capital requirement from the usual 32 ETH to simply 1 ETH, considerably reducing the barrier to entry for particular person stakers. Furthermore, customers who stake Ether by Puffer Finance obtain Puffer liquid restaking tokens (nLRTs), which can be utilized to farm yields in different decentralized finance (DeFi) protocols concurrently with their Ethereum staking rewards.

Liquid staking, a course of that permits customers to stake their belongings whereas sustaining liquidity by 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.

Information from DeFiLlama signifies that Puffer Finance’s whole worth locked (TVL) surpassed $1.2 billion shortly after its early take a look at part in February, demonstrating sturdy demand for its liquid staking resolution. Up to now, the protocol has raised a complete of $23.5 million in enterprise capital funding.

Amir Forouzani, a core contributor at Puffer Labs, emphasised the mission’s aim, stating, “We purpose to considerably scale back the boundaries for house validators to take part, whereas delivering essentially the most superior liquid restaking protocol.”

The Ethereum liquid staking market has skilled large progress, with a TVL exceeding $51 billion, largely pushed by Lido Finance, the biggest liquid staking protocol on Ethereum. As of March 2024, Lido Finance has a TVL of over $11 billion, with greater than 9.78 million ETH staked on the platform.

Liquid staking affords a number of advantages to Ethereum customers, together with diversification of earnings, threat mitigation, improved capital effectivity, enhanced community safety and decentralization, and the power to make use of staked belongings in DeFi functions. By enabling extra contributors to stake their ETH, initiatives like Puffer Finance contribute to the general well being and resilience of the Ethereum community.

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