In the Ethereum ecosystem, staking services are an important cornerstone of network security and decentralization. However, the traditional staking mechanism still has many challenges in terms of threshold, efficiency and income distribution. As the innovative infrastructure of Ethereum, Puffer has comprehensively reshaped the Ethereum staking ecosystem with liquidity re-pledge (nLRT), Puffer UniFi based on Based-Rollup technology, and pre-confirmation technology UniFi-Preconf-AVS, operating for users and nodes. bring new opportunities. This article will comprehensively analyze the technical highlights and business model of Puffer, and explore its far-reaching significance for the decentralization and sustainable development of Ethereum.

Puffer Introduction

Puffer is Ethereum’s innovative infrastructure. Its core products include:

Liquidity Re-pledge (LRT): Through the native liquidity re-pledge protocol, it provides the service of starting a node with as little as 2 ETH, and is equipped with anti-forfeiture ( anti-slashing) technology;

UniFi-Based-Rollup: Built based on Based-Rollup technology, it solves the liquidity fragmentation challenge of Ethereum and provides vertical qualification services without permission;

UniFi-Preconf-AVS: Through preconfirmations (Preconfirmations) technology, transaction time is greatly shortened, making the user experience of Based-Rollup comparable to other high-performance Rollup technologies.

The three core products have clear goals

For users: solve the challenge of Ethereum’s liquidity fragmentation, While maintaining a high degree of decentralization, it greatly increases transaction speed;

For Ethereum nodes: By providing sustainable income, it helps Ethereum further achieve decentralization. Thereby improving its credibility and neutrality.

Business Analysis

Puffer further creates more potential income for Puffer stakers by building the UniFi application chain and technology stack and UniFi-AVS for pre-confirmation .

puffer-UniFi-Based-Rollup and technology stack

Compared with Optimistic-Rollup and ZK-Rollup, Based -The biggest difference in Rollup is the order of transactions. The transaction sorting of OP-Rollup and ZK-Rollup requires two times (once at Layer2 level + once at Layer1 level). Based-Rollup's transaction sorting is all at the Layer1 level, which means the highest degree of decentralization (Layer2 currently generally adopts a centralized sorting mechanism), eliminating single points of failure and the risk of evil, and all Ethereum pledgers can benefit. .

puffer plans to achieve an ecosystem similar to OP-Superchain by building its own UniFi-Based-Rollup and promoting the UniFi technology stack.

However, since Based-Rollup and Layer1 have the same block time (12s/block), it is not enough to meet application needs. How to improve user experience, especially transaction speed, is become very important.

puffer-UniFi-Preconf-AVS

UniFi-Preconf-AVS is preconfirmations (Preconfirmations) technology, which can greatly shorten the time for users to use UniFi-Based- The waiting time during Rollup (on the order of 100 milliseconds) makes the user experience of Based-Rollup comparable to OP-Rollup and ZK-Rollup. Therefore, UniFi-Based-Rollup, with the support of UniFi-AVS, is a complete and competitive system. All re-stakeholders who provide verification services for UniFi-AVS can benefit.

Puffer UniFi's first-stage test network (developers only) has been completed, and the second-stage test network (for the public) will be launched soon.

Puffer provides a permissionless, vertical Ethereum staking service (LST+LRT), which is a native liquidity re-pledge protocol (Native LRT, nLRT) ).

Typical liquidity staking protocol, such as LidoDAO. RocketPool, etc. Typical vertical protocols, such as Ether.fi, Puffer, etc. Only providing LRT service agreement, there is KelpDAO.

In the Ethereum liquidity staking service system, there are three important roles, namely ETH pledger (Staker), node operator (Node-Operator), and liquidity Pledge Agreement.

The pledger deposits ETH into the liquidity staking agreement and obtains the liquidity staking certificate➡ The liquidity staking agreement and the node operator jointly launch the Ethereum verification node, The node operator is responsible for operating it to earn PoS verification revenue ➡ The PoS verification revenue is returned to the stakers as agreed, and the remaining part is used as protocol fees and node operator fees.

There are the following pain points in starting the Ethereum verification node:

1. The entry threshold is too high, 32 ETH is required for startup, and the capital utilization rate is low;

2. In order to avoid the risk of being forfeited due to node offline, the common practice in the industry is to run one node with two devices (that is, one device is in standby mode as a backup), but this further creates the risk of double signing, and The forfeiture caused by the risk of double signing is more severe;

3. Ethereum staking income has declined as the Ethereum staking rate has increased, but the emergence of Eigenlayer is expected to systematically solve the problem of continued low yields;

4. Start the Ethereum verification node through the liquidity staking protocol. Most protocols use a whitelist mechanism and no permission is required.

Puffer took the opportunity to solve the above-mentioned industry pain points and independently developed a unique anti-forfeiture technology and a node mechanism that can operate as low as 2ETH.

puffer Anti-forfeiture technology

This technology consists of two modules: Secure-Signer and Remote Authentication (RAVe, Remote-Attestation-Verification).

Secure signature module, which uses the Trusted Execution Environment (TEE) to store the verifiers required for custody node verificationPublic key, TEE can ensure the security of the verified public key, which is comparable to the safety of cold wallet levels.

The remote authentication module is used to verify whether the security signature module runs normally and extract the verified public key in a safe environment to complete the remote signature.

Through the above-mentioned anti-punishment without technology, it has reduced penalties to the greatest extent, and then has the possibility of improving capital efficiency.

In addition, Puffer monitor the running status of the Puffer node through the Guardians module to prevent the node from being punished for a long time due to offline, ensuring that the funds of node operators are not seriously lost.

Puffer as low as 2ETH to start nodes and validators (Validator-Tickets) mechanism

Node operators start Puffer nodes by paying 2ETH as mortgage and purchasing verification bills.

The benefits of starting the node as low as 2ETH are that the more nodes operated by i), the higher the possibility of random selection as verification nodes. The higher the yield, the higher the capital utilization rate; II) greatly reduces the entry threshold and increases the degree of decentralization of Ethereum in disguise.

VT is equivalent to tickets that open nodes. Losses) are equivalent to pre -saving pledge income to the campaign. It should be noted that VT prices will change with the increase and decrease of node startup demand.

Because of the emergence of Eigenlayer, it brings more benefits to the Ethereum pledgers. The liquid pledge voucher passes the re -pledge method, and the Eigenlayer's active verification service (AVS) will lend Ethereum security consensus to the need for application chains, infrastructure and other projects in exchange for re -pledge income.

Puffer, as a vertical pledge service protocol, the PUFETH issued is a liquidity re-pledged certificate, which can also obtain POS verification income and AVS verification income at the same time.

Valuation analysis

This article only provides valuation methodology, and does not provide specific conclusions.

Vertical pledge service valuation Method 1, the number of ETH involved in the pledge through Ether.Fi is about 2.1m, the market value of Ether.Fi is about $ 330m, and the number of ETH participating in pledge through Puffer is about 220K, then the number of ETHs is about 220k, then The valuation of the Puffer pledge service can be obtained.

Method II, Puffer participates in the number of ETHs of ETH* ETH price* pledge annualized return (LST+LRT)* PUFFER protocol rate* PE, you can get it, you can get it. Puffer pledge service valuation.

Unifi and Unifi AVS valuations

public chain transaction is the key indicator of income; Transactions * GAS * Margin * PE, can get Puffer Unifi+Unifi AVS valuation.

Risk prompts

It is necessary to pay attention to the risks such as the PUFFER protocol rate, the re-pledge income, the uncertainty of the UNIFI ecological development, and the vulnerability of the protocol. Puffer has attached great importance to the security of the agreement. In the past year, Puffer has hired 4 professional code audit companies in the industry (BlockSec, Creed, Nethermind, Slowmist).

Conclusion

Puffer solves the multiple pain points in the Ethereum pledged ecosystem through innovative technology design and profound industry insights. Its native liquidity re-pledge, Unifi-Based-Rollup and pre-recognition technology not only optimize the user experience, but also help the decentralized process of the Ethereum network. In the context of the rapid development of the industry, the emergence of Puffer provides a new industry benchmark, and its future potential is worthy of continuous attention and expectations.