Ethereum Liquid Redemption Protocol Puffer Finance Hits $200 Million Valuation in New Token Funding Round

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By Harper Lee

Puffer Finance, a Ethereum ETH

liquid takeover protocol built on EigenLayer, raised $18 million in a Series A funding round co-led by Brevan Howard Digital and Electric Capital.

Other investors participating in the round included Coinbase Ventures, Kraken Ventures, Franklin Templeton, Avon Ventures (a venture fund affiliated with FMR LLC, the parent company of Fidelity Investments), Mechanism Capital, Lightspeed Faction, Consensys, Animoca, GSR and Lemniscap , Puffer Finance. said Monday.

Angel investors including Polygon co-founder Sandeep Nailwal, Wormhole co-founder Anthony Ramirez, AltLayer co-founder Yaoqi Jia, and Pendle Finance senior contributor Anton Buenavista also joined the round.

The round was structured as a simple agreement for future tokens (SAFT), Puffer co-founder Amir Forouzani told The Block via a spokesperson. The round brought Puffer’s fully diluted token valuation to $200 million, Forouzani added.

Puffer’s Series A round comes shortly after raising funding from Binance Labs earlier this year. Last year, the project also raised $5.5 million in seed funding and a $650,000 pre-seed round as an initial round.

Ethereum recovery gains momentum

The Ethereum readjustment vertical has been gaining momentum since the launch of EigenLayer last year. This led to the launch of several EigenLayer-based platforms this year. Puffer Finance is currently the third largest liquid redemption protocol in terms of total value locked (TVL) after Ether.Fi and Renzo, according to DeFiLlama. data. Puffer currently has a TVL of $1.17 billion, compared to Ether.Fi’s $3.5 billion and Renzo’s $2.95 billion.

With Series A funding in place, Puffer Finance now aims to launch its mainnet, which it says will expand validator participation within the Ethereum ecosystem and improve its decentralization. “By reducing entry requirements to just 1 ETH for validators and improving their revenue through the integration of Ethereum’s proof of staking with Actively Validated Services (AVS) re-staking yields, the network Puffer’s principal sets a new standard for innovation in the liquid re-staking landscape,” the project says.

Puffer also received a grant worth $120,000 from the Ethereum Foundation for its open source tool called Secure-Signer. The tool allows Ethereum validators to reduce the risk of discounts or penalties.

Avical Garg, co-founder and general partner of Electric Capital, said in a statement: “By lowering barriers to entry and strengthening security measures, Puffer’s technology ensures broader participation and strengthens network integrity. »

Peter Johnson, project co-lead at Brevan Howard Digital, said in a statement that Puffer Finance is building “critical infrastructure that enhances the decentralization and security of Ethereum” and that BHD remains committed to “supporting projects critical to the growth and security of Ethereum. resilience of the blockchain ecosystem.

(Updates to mention Avon Ventures)

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