Ethereum users flood into Puffer Finance, driving TVL to $850 million in less than two weeks, making it second-largest liquid restaking protocol.

Puffer Finance, a native liquid restaking protocol built on Ethereum and integrated with EigenLayer, has attracted around $850 million in total value locked (TVL) in less than two weeks after launch, making it the second-largest liquid restaking protocol by TVL on Ethereum. The protocol went live around February 1, 2024, and quickly scaled from roughly $146 million in TVL on its first day to surpassing $850 million by February 10, according to DefiLlama and industry reports. This surge has put Puffer behind only ether.fi in the liquid restaking segment, overtaking other rivals such as Renzo and Kelp DAO. Puffer Finance lets users deposit ETH and receive a liquid restaking token (pufETH), which accrues yield from both Ethereum staking and EigenLayer restaking, effectively stacking multiple yield streams on the same underlying ETH. Growth has been boosted by a multi-stage points campaign that rewards user activity—commonly interpreted in the market as potential positioning for a future airdrop—as well as Puffer’s anti-slashing technology, which is designed to protect validators from penalties while improving capital efficiency. Backed by investors including Binance Labs and other venture funds, and positioned as a decentralized native liquid restaking protocol on EigenLayer, Puffer’s rapid TVL expansion signals intensifying competition in Ethereum’s liquid restaking market and underscores how incentive programs and restaking infrastructure are shaping flows of capital and validator participation across the ecosystem.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Puffer Finance news: $850 million of TVL - The Cryptonomist (en.cryptonomist.ch)
• What is Customer Demographics and Target Market of Puffer ... (businessmodelcanvastemplate.com)
• Puffer Finance TVL Skyrockets to $850M By Benzinga (uk.investing.com)
• Puffer Finance TVL Skyrockets to $850M - Benzinga (benzinga.com)
• LSD protocol Puffer Finance TVL exceeds US$850 million | Binance ... (binance.com)

Explore the topic

• Ethereum
• Restaking
• TVL