Puffer Use-cases in Action
Puffer Use-cases in Action
Greetings, Puffer community! We recently announced that $CARROT claiming is now live, presenting another opportunity for users to participate in our expanding ecosystem. With a total supply of 100M $CARROT, the entire allocation is set to be redeemed for 55M $PUFFER. As part of this process, 20% of the $CARROT supply will be automatically converted into PUFFER by the end of Season 2, ensuring a structured transition.
On the topic of added utility and incentive alignment, today we want to explore other areas for our community to derive further value in the Puffer ecosystem.
1. Restake ETH to Mint pufETH While Earning PoS & Restaking Rewards
As a native Liquid Restaking Token (nLRT), pufETH enables stakers to earn both Proof-of-Stake (PoS) and restaking rewards, maximizing returns without the need for complex DeFi strategies. This streamlined approach allows users to benefit from Ethereum staking and EigenLayer restaking while maintaining ease of access and passive yield generation. However, for those who prioritize composability and liquidity, pufETH remains a fully tradable token, seamlessly integrating with DeFi protocols, enabling additional earning opportunities through lending, borrowing, or yield farming.
Stakers can also deposit ETH into Puffer to mint pufETH, which represents their staked assets within the protocol. The pufETH:ETH conversion rate will increase as the protocol is live and staking rewards accumulate. The protocol is designed to optimize staking efficiency by maximizing rewards and minimizing penalties, thereby enhancing the value of pufETH. The amount of ETH redeemable per unit of pufETH will progressively rise, providing long-term value appreciation for participants and reinforcing the benefits of staking within the Puffer ecosystem.
2. Voting & Governance
We are revolutionizing decentralized governance through $PUFFER and vePUFFER, enabling community-driven decision-making in our expanding ecosystem. As discussed later, users can stake $PUFFER to mint vePUFFER NFTs, granting voting power that grows linearly up to 2x over time. This governance model gives our community the ability to influence key developments relating to Puffer LRT, UniFi Based Rollup, and UniFi AVS. Our Governance follows a structured workflow, moving from proposal creation to discussion, review, and voting, promoting transparency and active participation.
3. Stake pufETH, BTC or ETH into the Puffer Vaults to Earn Extra CARROT Rewards
Additionally, users can stake their pufETH in the Puffer UniFi Vault to help fight Ethereum’s longstanding fragmentation issues. While staking, users will also receive UnifiETH, which will be usable as a native yield gas token once UniFi Mainnet launches. Right now users can stake their pufETH in the Puffer UniFi Vault to earn $CARROT for Season 2 and help address Ethereum’s fragmentation issues! Stake now at:https://t.co/KGnJ2d4d7Lhttps://app.puffer.fi/vaults
We also recently introduced the unifiBTC and unifiUSD Vaults, signalling a major expansion of the Puffer ecosystem beyond ETH, while unlocking fresh yield opportunities for the wider crypto community. These vaults represent a significant step forward, offering competitive yields driven by various DeFi strategies and boosted by $CARROT rewards, while seamlessly combining sustainable returns with active participation in $PUFFER Season 2 governance. Whether users are depositing BTC or stablecoins, these vaults are optimized to maximize returns while furthering Puffer’s mission of creating a more decentralized and inclusive ecosystem. Here is the asset-specific breakdown for both vaults:
unifiETH Vault
• Assets: pufETH
unifiBTC Vault
• Assets: wBTC, LBTC, cbBTC, pumpBTC, solvBTC
unifiUSD Vault
• Assets: USDC, USDT, lvlUSD, slvlUSD
4. Stake PUFFER Token to Earn CARROT Token in Every Rewards Epoch
https://vote.puffer.fi/plugins/stake/
As reported byCoinDesk, the recent Season 2 Update introduced tokenized incentives with the new CARROT token, replacing off-chain points with on-chain rewards. Users can now earn CARROT through activities like staking PUFFER, governance voting, and liquidity provisioning — reflecting our commitment to full on-chain governance and enhanced transparency while eliminating points dilution.
Right now, a bi-weekly gauge voting system is in place to empower the community to decide how incentives are distributed, ensuring a transparent and dynamic rewards structure. At the end of Season 2, CARROT tokens will convert into $PUFFER, further integrating participants into the ecosystem. Alongside these incentives, governance enhancements will foster greater transparency and decentralized decision-making, strengthening community control over Puffer’s evolution. This update sets the stage for a more engaged and incentivized Web3 governance model. For more information on CARROT, check out the following medium post.
5. Put pufETH into Different DeFi Projects to Earn Rewards
Users can also deploy pufETH across various DeFi projects to maximize their earning potential. As a native Liquid Restaking Token (nLRT), pufETH accrues both Proof-of-Stake (PoS) and restaking rewards, allowing stakers to passively grow their holdings. Additionally, pufETH seamlessly integrates with DeFi protocols, enabling users to lend, borrow, provide liquidity, or yield farm without unstaking. This flexibility allows for compounding returns as users can earn staking rewards while simultaneously leveraging DeFi opportunities, which you can check out in the Puffer app.
6. Portfolio page
https://app.puffer.fi/portfolio
Within the Puffer app, you can connect your wallet and view your portfolio, including the amount available for staking, total staked, your Season 1 points, as well as CARROT rewards. Connect via MetaMask, Coinbase Wallet, OKX Wallet and more.
7. New Puffer App!
And from the screenshots above, you can see that we recently launched the Puffer App, offering a sleek, intuitive design that simplifies staking and DeFi participation. With 1-click staking, users can effortlessly unlock the full potential of restaking for additional rewards.
The app provides seamless access to our vaults, enabling users to maximize returns while maintaining liquidity. Designed for both beginners and advanced DeFi users, the app is easy to navigate, secure and efficient.
The followingX post provides a brief video tutorial of the app in action.
Thanks for reading! The huge support of the Puffer community is so important to our mission, and we greatly appreciate your participation and feedback. As always, be sure to check out ourX,Discord, andTelegram to keep updated on the latest developments!
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, we are dedicated to enhancing Ethereum’s decentralization. Visitpuffer.fi for more information.