Puffer Finance Adopts the Chainlink Standard to Help Power its Liquid Restaking Protocol

Puffer Finance Adopts the Chainlink Standard to Help Power its Liquid Restaking Protocol

We’re excited to announce that Puffer Finance has adopted the Chainlink standard for cross-chain interoperability across Ethereum and Soneium and the Chainlink standard for verifiable data on Ethereum.

While Puffer is broadly recognized as a Liquid Restaking Protocol, the project has rapidly evolved into a leading innovator in Ethereum’s decentralized infrastructure. Chainlink CCIP enables highly secure cross-chain transfers of its liquid restaking token (LRT) pufETH. Chainlink Price Feeds deliver tamper-proof market data to support highly secure markets around pufETH.

We selected CCIP as our preferred interoperability solution because Chainlink has the most proven track record of maintaining the highest standard of security and reliability in the industry while accelerating blockchain integrations that can deliver on our interoperability needs. Thanks to its principle-driven approach, Chainlink has built one of the largest ecosystems in the blockchain industry and is the blockchain connectivity standard within capital markets. Connecting Puffer Finance to the Chainlink community and ecosystem offers a multitude of growth opportunities that help Puffer Finance get closer to its goals and increase ecosystem adoption.

Puffer Finance is a modular liquid restaking protocol designed to maximize ETH staking rewards while safeguarding staker funds. Users stake ETH through the PufferVault to mint pufETH, a liquid restaking token that accumulates PoS rewards, restaking rewards, and validator ticket incentives. Validators, known as NoOps, register by submitting collateral and validator tickets, then receive pufETH upon successful validator exit. Governance oversees the protocol’s operation — managing restaking modules, delegations, and operator commitments — to ensure secure validator provisioning and reward distribution. The result is a system where both stakers and validators can access enhanced returns through a trust-minimized, modular architecture.

In order to help secure cross-chain transfers of pufETH, we needed access to a highly reliable interoperability solution. After reviewing various solutions, we integrated Chainlink CCIP because it provides a multitude of important benefits and features, such as:

- Always-on infrastructure — CCIP is built with the same time-tested infrastructure as other services that underpin prominent protocols across DeFi with zero downtime, ensuring reliability in every cross-chain transaction.
- Battle-tested security — CCIP’s consensus layer is powered by Chainlink Decentralized Oracle Networks (DONs)., infrastructure that has secured over $75 billion in DeFi TVL at its peak and enabled over $20 trillion in onchain transaction value since the start of 2022.
- Secure Token Transfers — Send value over the CCIP network.

Cross-Chain Tokens (CCTs) are token logic agnostic, meaning token developers can deploy pre-audited token pool contracts to turn any ERC20-compatible token into a CCT or deploy their own custom token pool contracts for bespoke token use cases. CCTs do not require token developers to inherit any CCIP-specific code within their token’s smart contract. CCTs also benefit from additional security functions in their CCIP token pools, such as configurable rate limits and reliability features such as Smart Execution, which helps ensure reliable transaction execution on the destination chain regardless of blockchain network congestion.

- Programmable Token Transfers — Send value and messages over the CCIP network.

CCIP enables the transfer of value (via CCTs) cross-chain along with data instructions informing the receiving smart contract on what to do with those tokens once they arrive on the destination chain. Through Programmable Token Transfers, CCIP can condense a complex set of actions involving multiple users, blockchains, and assets down to a single atomic cross-chain instruction.

To help further secure pufETH, we needed access to fresh asset prices that are supplied directly onchain in a highly reliable manner. Fair market asset prices should reflect a volume-weighted average from all trading environments. Thus, we needed to make use of an oracle network to fetch aggregated price data offchain and deliver it onchain to be consumed by our application. After reviewing various oracle solutions, we integrated Chainlink Price Feeds because they provide a multitude of critical features

> “Chainlink is the standard for secure cross-chain interoperability and verifiable data. By adopting Chainlink CCIP and Price Feeds, we’re enhancing the security of Puffer Finance and positioning the protocol to gain significant adoption across DeFi,” said Amir Forouzani, Co-Founder of Puffer Labs.

About Chainlink

Chainlink is the standard for onchain finance, verifiable data, and cross-chain interoperability. Chainlink is unifying liquidity across global markets and has enabled over $20 trillion in transaction value across the blockchain economy. Major financial market infrastructures and institutions, such as Swift, Fidelity International, and ANZ Bank, as well as top DeFi protocols including Aave, GMX, and Lido, use Chainlink to power next-generation applications for banking, asset management, and other major sectors. Learn more by visiting chain.link.

About Puffer Finance

Puffer Finance is a leading innovator in Ethereum infrastructure, focusing on next-generation rollups supported by liquid restaking (LRT) and preconfirmation as an AVS. With products like Puffer UniFi and Puffer UniFi AVS on EigenLayer, Puffer is dedicated to enhancing Ethereum’s decentralization. Learn more: www.puffer.fi