Puffer has turn into the third largest mild rail settlement.
Puffer Finance is the newest liquidity re-collateralization protocol to emerge, with the challenge hovering to nine-figure TVL inside a day of launch.
Puffer Finance began accepting deposits on February 1, emission That is an exploration and vampire assault designed to reward customers in change for changing Lido’s stETH token, the main liquid staking token (LST), into its liquid restaking token (LRT) pufETH.
Based on DeFi Llama, the marketing campaign has achieved spectacular success on launch day, with the protocol’s whole worth locked (TVL) reaching $194 million.
mild rail division balloon
Puffer is the newest entrant within the booming mild rail sector, the place TVL has soared to greater than $1 billion after being underneath $50 million in early November.
Re-staking tokens builds on the success of LSTs like stETH, which permits token holders to earn ether staking rewards with out working an Ethereum node. LST additionally permits customers to keep up liquidity, that means the tokens can be utilized in DeFi to generate further yield, or bought instantly to keep away from the standard 28-hour delay related to guide unstaking.
LRT gives the identical advantages, however with further rewards by means of native re-staking on EigenLayer, a protocol that enables stakers to confirm third-party companies to earn further advantages past staking rewards. Customers can entry EigenLayer by depositing LST into its capped pool or by depositing limitless ETH. LRT makes use of native heavy staking to offer further advantages to token holders.
In latest months, the sunshine rail trade has skilled explosive progress, pushed by the large success of the groundbreaking mild rail protocol EtherFi. EtherFi’s TVL at present stands at $608 million, a 77% enhance because the begin of the DeVamp marketing campaign on January 24. EtherFi’s spectacular efficiency additionally comes with its “super week” Occasion – Affords elevated EigenLayer and EtherFi Factors forward of the April EtherFi token era occasion.
Different main LRT protocols embody Kelp DAO with a TVL of $280.5 million and Renzo with a TVL of $171 million. Consequently, the highest 4 LRT protocols have accrued $1.25B value of property, accounting for 59.5% of EigenLayer’s $2.1B TVL.
Ethereum re-collateralizes and migrates to new chain
The main mild rail protocol additionally goals to carry effervescent mild rail methods to new chains.
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In October, EtherFi introduced that it was working with Polygon to introduce packaged eETH to the Polygon zkEVM layer 2 community. EtherFi expects zkEVM to be launched within the coming months.
On January 30, Binance Labs introduced its funding in Puffer to assist the launch of pufETH on the BNB chain. On February 1, Renzo additionally said that it had Team up Partnering with cross-chain interoperability protocol Connext Community to carry native re-collateralization to Arbitrum, the main Ethereum layer 2.
