KoinlyticsPuffer runs actual Ethereum validators (not just LST wrappers) and restakes their positions via EigenLayer. Its innovation: node operators can run validators with less than 32 ETH by posting slashing insurance in Puffer's protocol.
Traditional Ethereum validator
32 ETH bond. Run the software. Earn ~3% APR. Get slashed if you double-sign or misbehave.
Puffer's model
Node operator posts ~1-2 ETH as slashing insurance. Puffer provides the rest of the 32 ETH from user deposits. Operator earns commission; users earn most of the yield. Puffer's anti-slashing tech (Secure-Signer) reduces slashing risk to near zero.
pufETH
Users deposit ETH into Puffer and receive pufETH. It represents their share of restaked validators. pufETH earns:
- Ethereum staking yield (~3%).
- EigenLayer AVS rewards.
- Points that may convert to PUFFER tokens.
Why native matters
Restaking LSTs (like stETH via EigenLayer LSD pool) requires trusting Lido's operator set on top of EigenLayer's. Native restaking removes the Lido layer: you directly control (or run) the Ethereum validator. Fewer trust layers.
Trade-offs
- Solo validators are slower to onboard than LST deposits.
- Slashing risk (mitigated but not zero).
- Newer protocol, smaller TVL than pure LRTs like ether.fi.