Ethereum LSD Solution Puffer Finance Moves to Established Scrolls After Raising $18M
Puffer Financial, a Liquid Staking Derivatives (LSD) project built on top of Ethereum's reworking protocol Eigenlayer, is co-developing blockchains in partnership with the Ethereum Foundation after previously receiving $18 million in Series A funding to launch the mainnet.
Rollups reduce the burden on layer-1 blockchains by processing transactions off-chain and attaching a completed transaction to the base layer. In an interview with Cointelegraph, Amir Furuzani, founder of Puffer Financial, discussed the continued market demand:
“Currently, there is a challenge in the Ethereum ecosystem known as liquidity sharding. This issue arises because the current L2 projects are each creating their own ‘superchains' leading to isolated reservoirs.
“To address this, the industry is looking for solutions like established protocols and established packages to ensure interoperability and connectivity between these chains,” Fuffer said, noting that Finance has decentralized validators by organizing pre-verifications on Ethereum layers. And if there is no need for a general ethereum reform proposal.
“It took us years to architect and build this, but now we have it,” he said. “This is a current central research area for the Ethereum Foundation. The thought leaders there are trying to push this forward with leaders like Justin Drake and others.”
A blockchain executive has demonstrated the power of blockchains in the field of decentralized finance:
“In the future, every company will have its host AppChain. Let's say Aave has its own AppChain, and liquid Aave is about to hit; well, it will be immediately represented on Uniswap's AppChain. This is the ultimate dream. Uniswap and Aave don't have to go through any governance token or any governance They don't have to rely on process.So, we are also getting to the reliable package coverage.
For Forouzani, another positive benefit of an interactive application chain ecosystem is indigenous products. “Many users prefer to generate their tokens effortlessly in their wallets rather than just keep them on the established chain,” he commented.
According to data from Defilama, after passing the first round of testing in February, Puffer Finance surpassed its total value locked (TVL) of $1.7 billion. To date, the protocol has raised a total of $23.5 million in venture capital funding.
Puffer Finance's current LSD technology allows Ethereum validators to reduce their capital to just 1 Ether (ETH), down from the 32 ETH required for individual stakeholders. In addition, users who sell Ether through Puffer will receive Puffer liquid restaking tokens (nLRTs), which can be used to develop products in other decentralized finance protocols at the same time as Ethereum stock rewards.
Related: EigenLayer improves EigenDA security to combat Sybil attacks
