The total value locked (TVL) in Puffer Finance, a liquid restaking protocol on Ethereum, has soared to $850 million, marking it as the second-largest protocol of its kind.
Puffer Finance, which went live on February 1st, offers users the ability to deposit ether and receive a liquid staking token in return, allowing them to earn yield from ETH staking and restaking activities.
Within its first day, Puffer Finance amassed a TVL of $146 million, swiftly surpassing competing projects like Renzo and Kelp DAO to claim the second spot among liquid restaking protocols.
As of February 13, its TVL crossed the $913 million mark, trailing behind the market leader, either.fi, which boasts $1.12 billion in TVL.
To drive adoption, Puffer Finance has implemented a five-stage points program, rewarding users with points who interact with the platform.
The other reason behind the surge in adoption may be Puffer Finance’s anti-slashing tool. Charles Booth, growth at Parsec Finance, noted in a recent newsletter, “In theory this should allow validators to reduce the risk of slashing while enhancing capital efficiency.”
Also Read: Binance Labs Fuels Puffer’s Vision for Decentralized Staking
