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Liquid Restaking Protocol Puffer Raises $18M, Led by Brevan Howard, Electric Capital

Apr 15, 2024

According to a statement made by Puffer on Tuesday, they have successfully secured $18 million in their Series A financing round for their liquid restaking protocol.

In a press statement, the company announced that Brevan Howard Digital and Electric Capital took charge of the funding round. Coinbase Ventures, Kraken Ventures, Lemniscap, Franklin Templeton, Fidelity, Mechanism, Lightspeed Faction, Consensys, Animoca, and GSR also participated in the investment.

A new injection of funds will aid in the debut of Puffer’s mainnet. Previously, Puffer secured $5.5 million in investment during a joint funding round led by Lemniscap and Lightspeed Faction.

Puffer is the second-largest liquid restaking protocol behind Ether.Fi, and is part of a class of protocols that have come out of the growing “restaking” field that has taken the Ethereum ecosystem by storm. EigenLayer, a restaking pioneer that launched last week albeit without some of its more highly anticipated functionality, has attracted some $12.7 billion of user deposits to become the second-biggest decentralized-finance protocol, according to DeFiLlama.

With liquid restaking protocols, your deposited Ethereum gets transferred to EigenLayer, enabling Ethereum stakers to earn rewards by employing their ETH tokens to strengthen third-party platforms called “actively validated services” (AVS) in the EigenLayer network. Puffer is an example of such a service.
Puffer then hands out their own token, pufETH, to its users representing their deposit, allowing them to use that token for trading or for other purposes.

In March, Puffer surpassed the $1 billion mark in deposits, indicating great anticipation among users for staking, even prior to the launch of the mainnet protocol.

“At the upcoming launch of our mainnet, Puffer Finance’s CEO, Amir Amir Forouzani, announced plans to make it easier for home validators to join and to introduce an innovative liquid restaking protocol. This development is a significant advancement towards increasing Ethereum’s decentralization and enhancing the overall staking ecosystem.”

Read more: Liquid Restaking Protocol Puffer Rakes in $1B in Deposits in Just 3 Weeks

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2024-04-16 13:06