Puffer Finance mainnet goes live, phase four of marketing campaign to convert user assets to ETH

The Ethereum re-collateralization protocol LRT project Puffer Finance announced the launch of its mainnet, where node operators can now register. However, the team will convert assets such as stETH and wstETH deposited by users into ETH within a few weeks, so participants need to pay special attention.

Background: Introduction to Puffer Finance

Puffer Finance is a validator service in the Ethereum ecosystem that aims to lower the barrier for individuals to become validators. Any user only needs to contribute 2 ETH, and the Puffer Finance protocol will provide the remaining 30 ETH for them to become validators, participate in maintaining the security of Ethereum, and receive rewards.

These ETH will come from other users depositing into the Puffer Finance protocol, which also includes the future token economics of Puffer Finance, EigenLayer staking rewards, and the cost of renting ETH for validators.

The protocol, with the mentioned features, is still under development on the mainnet due to the recent staking craze. However, the team has launched a marketing campaign called Crunchy Carrot Quest to encourage users to stake stETH assets.

Puffer Finance Mainnet Launch

Today, the team announced the launch of the Puffer Finance mainnet, with the marketing campaign entering its fourth chapter. Users can now deposit tokens such as ETH, stETH, wstETH, and the withdrawal function that was previously disabled is now enabled.

Conversion of User Assets to ETH

However, since ETH is the core asset for Puffer Finance operations and is unrelated to the stETH attracted by the marketing activities and staking craze, the team has made a new decision: to convert users' stETH and wstETH to ETH in the coming weeks.

Although the team stated that this is to reduce centralization risks for Ethereum, the actual reason is to ensure a smooth cold start for the Puffer Finance protocol and increase the stability of the initial mainnet operation.

If users wish to retain their stETH, they can withdraw their assets from the protocol before the team executes the conversion.

Details of the corresponding opportunities and risks of the LRT project for liquidity re-staking tokens

Node Operators Registration Open

Users can register to become Node Operators on the Puffer Finance website using their wallet address here, requiring a 2 ETH deposit as collateral to mitigate risks. Node Operators' computer equipment requirements can be found here.

Subsequently, the anti-slasher feature of Puffer, which protects against slashing, will be opened for users who choose to deposit only 1 ETH, expected to be available in the next few weeks.

As the optimization work for the EIgenLayer protocol to reduce gas fees is ongoing, Node Operators are currently unable to claim their consensus rewards.