The total value locked (TVL) in the Puffer Finance protocol, specializing in liquid staking of Ethereum, has reached $855 million, placing it second in its category. This protocol, launched on February 1, 2024, allows users to stake Ethereum (ETH) and receive a liquid token in return, generating income from staking. Immediately after its launch, the protocol's TVL increased by $146 million, indicating high interest in this product.
Puffer Finance quickly surpassed its competitors, such as Renzo and Kelp DAO, thanks to a unique five-stage loyalty program that rewards user interaction with the platform. Additionally, an innovation in the form of a protection tool from Puffer Finance can reduce risks for validators and increase capital utilization efficiency.
The growing popularity of Puffer Finance is also linked to users' expectations to receive Puffer governance tokens as part of yield farming. Before the official launch of Puffer Finance, its founders announced receiving investments from Binance Labs. Moreover, the project has already attracted funding from well-known venture firms such as Brevan Howard Digital, Jump Crypto, and Lightspeed Faction.
