Puffer already ranks because the third-largest LRT protocol.
Puffer Finance is the most recent liquid restaking protocol to burst onto the scene, with the undertaking surging to a nine-figure TVL inside in the future of launching.
Puffer Finance opened its doorways to deposits on Feb. 1, launching a quest and vampire assault looking for to reward customers in alternate for changing Lido’s stETH token — the main liquid staking token (LST) — for its liquid restaking token (LRT), pufETH.
The marketing campaign has proved a formidable success on its debut day, with the protocol already boasting a complete worth locked (TVL) of $194M, in response to DeFi Llama.
LRT sector balloons
Puffer is the most recent entrant into the booming LRT area, with the sector ballooning to a greater than $1B TVL after sitting at lower than $50M at first of November.
Restaking tokens construct on the success of LSTs like stETH, which permit tokenholders to earn Ether staking rewards with out working an Ethereum node. LSTs additionally permit customers to stay liquid, which means the tokens can be utilized in DeFi to generate extra yield, or offered immediately to sidestep the same old 28-hour-long delay related to manually unstaking.
LRTs present the identical advantages but in addition accrue extra rewards from native restaking on EigenLayer, a protocol permitting stakers to validate third-party companies for additional yield on high of staking rewards. Customers can entry EigenLayer both by depositing LSTs into its capped swimming pools or natively by depositing ETH with out restrict. LRTs leverage native restaking to offer extra yield to tokenholders.
The LRT sector has exploded in current months, led by the meteoric success of EtherFi, the pioneering LRT protocol. EtherFi’s TVL at present sits at $608M, up 77% because the begin of its DeVamp marketing campaign on Jan. 24. EtherFi’s spectacular efficiency additionally follows the launch of its “Mega Week” marketing campaign — which affords boosted EigenLayer and EtherFi factors forward of EtherFi’s token technology occasion in April.
Different main LRT protocols embody Kelp DAO with a $280.5M TVL and Renzo with a $171M TVL. As such, the highest 4 LRT protocols have amassed $1.25B value of belongings, accounting for 59.5% of EigenLayer’s $2.1B TVL.
Ethereum restaking migrates to new chains
The main LRT protocols are additionally aiming to deliver the effervescent LRT technique onto new chains.
In October, EtherFi introduced it was working with Polygon to deliver wrapped eETH onto the Polygon zkEVM Layer 2 community. EtherFi expects the zkEVM launch will happen within the coming months.
On Jan. 30, Binance Labs introduced it had invested in Puffer to assist pufETH launching on BNB Chain. On Feb. 1, Renzo additionally mentioned it has teamed up with the cross-chain interoperability protocol Connext Community, to deliver native restaking onto Arbitrum, the main Ethereum Layer 2.
