Puffer Finance locked 850 million dolar in TVL and now becomes second largest liquid staking protocol operating on Ethereum.

In 13 Days, Puffer Finance Becomes Second Largest Liquid Staking Protocol on Ethereum

Since Puffer’s debut on February 1st, Puffer Finance has rapidly surged to secure a total value locked (TVL) of $850 million within its smart contracts. This achievement now positions it as the second-largest liquid restaking protocol operating on the Ethereum network.

Puffer Finance offers users the ability to deposit Ether and receive a liquid staking token in return, which earns yield from both ETH staking and restaking activities.

In its initial stages, Puffer Finance witnessed a TVL of $146 million on its launch day, as reported by DefiLlama. Within days, it surpassed competitors Renzo and Kelp DAO to secure its place among the top liquid restaking protocols. As of February 10th, it has reached the impressive milestone of $850 million in TVL, trailing slightly behind the market leader, ether.fi, which boasts a TVL of $1.04 billion – a figure that has been steadily climbing.

To drive adoption, Puffer Finance has implemented a five-stage points program, incentivizing users to deposit assets and engage with the platform. This strategy likely contributed to the surge in TVL. Points programs are becoming increasingly common in the industry, often serving as a precursor to potential airdrops, although such airdrops are typically not guaranteed.