Puffer

Puffer is a decentralized native liquid restaking protocol (nLRP) developed on Eigenlayer. It aims to simplify native restaking on Eigenlayer, enabling users to operate Ethereum Proof of Stake (PoS) validators and potentially increase their rewards.^[1]​

Overview

Puffer Finance is a decentralized native liquid restaking protocol built on Ethereum and integrated with EigenLayer, enabling users to stake ETH and receive pufETH, a liquid restaking token that provides exposure to both proof-of-stake and restaking rewards. The protocol lets node operators, known as NoOps, run 32 ETH validators with 2 ETH in collateral and Validator Tickets, while retaining their validators’ execution and consensus rewards. Validator Tickets contribute to the protocol’s reward distribution, while pufETH holders can use their tokens across decentralized finance applications. Puffer incorporates anti-slashing hardware support, validator ejection mechanisms, and restrictions on approved Actively Validated Services (AVSs) and restaking operators to manage protocol risks. It also uses a burst threshold that caps its share of Ethereum’s validator set at 22%, aiming to limit validator concentration and preserve network decentralization. ^[1]

Products

UniFi Rollup

Puffer UniFi is an Ethereum Layer 2 rollup built on the OP Stack that uses Ethereum validators to sequence transactions instead of relying on a centralized sequencer. It aims to reduce liquidity fragmentation across Layer 2 networks, support atomic composability between Ethereum and Layer 2, and direct a portion of sequencing fee revenue to Ethereum validators. UniFi supports 50-millisecond transaction preconfirmations and uses Trusted Execution Environment (TEE) proofs to enable withdrawals to Ethereum in minutes rather than the standard seven-day dispute period. Its Signal Service enables synchronous operations between Layer 1 and Layer 2 within the same slot. The network is mostly EVM-equivalent, allowing developers to use familiar Ethereum development tools and frameworks such as Hardhat, Truffle, and Remix.  ^[20]

Puffer Preconf

Puffer Preconf is an EigenLayer-based preconfirmation service that lets Layer 2 rollups offer transaction execution preconfirmations in about 100 milliseconds, with economic security backed by restaked ETH. Built on EigenLayer and integrated with Commit-Boost, the protocol uses a gateway-based architecture in which Ethereum validators delegate to gateways that provide preconfirmation services, with a lookahead mechanism coordinating sequencing rights for upcoming Ethereum slots. Unlike inclusion preconfirmations, which confirm that a transaction will be included in a block, execution preconfirmations commit to the transaction’s specified execution outcome. The protocol supports permissionless participation by validators, gateways, and Layer 2 networks without requiring a Puffer governance token, and uses cryptographically signed commitments, slashing mechanisms, and refunds for certain failed preconfirmations to address misbehavior and user losses. Its economic model splits preconfirmation fee revenue between validators and rollup operators, while Puffer UniFi is one implementation of the service. The initial deployment supports OP-based rollups and includes the Gattaca gateway, with plans to expand gateway participation, rollup compatibility, and slashing functionality. ^[21]

Puffer Institutional

Puffer Institutional is a staking and restaking platform designed for organizations managing ETH through traditional Ethereum staking and EigenLayer’s restaking infrastructure. Its architecture consists of an AccessManager smart contract for permissions and upgrade control, a Vault contract for managing assets, validators, and reward distribution, and a Restaking Operator account responsible for registering with Actively Validated Services (AVSs) and coordinating restaking rewards. Institutions can configure operational permissions, manage validator deployments through a designated Guardian account, and deposit ETH or WETH to receive ERC-4626-compliant institutional share tokens. Traditional staking rewards and restaking rewards are handled separately, with restaking rewards accumulating in EigenPods before being delegated to the Restaking Operator for participation in AVSs. Validator operations include 32 ETH deposits and controlled exit procedures, while the platform’s security framework incorporates access controls, EigenLayer infrastructure, and smart contract audits by BlockSec and SpearBit. The system lets institutions manage staking and restaking allocations to match their operational needs and risk preferences while retaining control over validator management and reward strategies. ^[22]

Puffer Token ($pufETH)

pufETH is a reward-bearing ERC20 token designed for compatibility with decentralized finance (DeFi), inspired by Compound's cToken. It offers a dual-source reward system that combines Ethereum Proof of Stake (PoS) rewards with earnings from restaking services, potentially outperforming traditional liquid staking tokens (LSTs). The token uses validator tickets to enhance value growth by frontloading PoS rewards, encouraging participation. Unlike LSTs, pufETH decouples rewards from validator performance, ensuring stable returns. pufETH integrates seamlessly within the LSDeFi ecosystem, allowing users to access restaking rewards directly by holding the token, thus maximizing the utility of their staked assets.^[6]​

Funding

Puffer has raised a total of $23.5 million through two funding rounds to support its development within the Ethereum ecosystem. The initial $5.5 million seed round, co-led by Lemniscap and Lightspeed Faction, aims to improve the viability of home stakers and promote decentralization through anti-slashing technology. Subsequently, Puffer secured $18 million in a Series A round led by Brevan Howard Digital and Electric Capital to facilitate the launch of the Puffer Mainnet and reduce the entry threshold for validators. These funding rounds involved various aligned investors and community funds, reflecting a commitment to the objectives of the Puffer protocol and the liquid staking market.^[16]​^[17]​