Puffer

• Puffer is a liquid restaking protocol on Ethereum that also operates a based rollup.

• Its anti-slashing hardware reduces the risk that a node operator error costs stakers their principal.

• PUFFER is the governance token.

• Supply allocated across community, ecosystem and investors.

• Governs protocol parameters and operator requirements.

Pros:

• Lowers the capital requirement for running a validator, widening operator participation.

• Anti-slashing technology addresses a real operator risk rather than assuming it away.

• The based rollup design inherits sequencing from Ethereum rather than running its own.

Cons:

• Restaking yield still depends on services paying for security.

• Based rollups are a newer design with less production history.

• Competes against much larger liquid staking and restaking protocols.

• Exposure to restaking with an explicit technical answer to slashing risk.

• Based rollup design avoids sequencer centralisation.

• Weigh the size disadvantage against established competitors.

• Hardware-enforced anti-slashing, so operator mistakes cannot trigger the penalty that costs stakers principal.

• Running an Ethereum validator requires 32 ETH and exposes the operator to slashing for technical errors.

• Pooling capital and enforcing correct behaviour in hardware lowers both barriers at once.

• Founded by Amir Forouzani and Jason Vranek.

• Backed by Brevan Howard Digital, Electric Capital and the Ethereum Foundation.

• No public ICO. Distributed through a points campaign and airdrop in 2024.

• Restaking adds slashing exposure beyond ordinary staking.

• Based rollup economics are unproven at scale.

• Liquid restaking tokens can depeg during withdrawal congestion.

• Competition from far larger protocols in the same segment.