Puffer Finance proposes listing pufETH, a unique liquid restaking token, as collateral on Moonwell. This proposal outlines the benefits of listing pufETH for both Moonwell users and the broader DeFi ecosystem.
General
Token Asset Name: pufETH
A description of the project and the token: Puffer Finance proposes listing pufETH as a collateral asset on Moonwell’s Base network. pufETH offers unique liquid restaking properties, combining Ethereum staking rewards with additional benefits from its integrations across DeFi platforms. Its listing will enhance Moonwell’s liquidity and borrowing options while aligning with Puffer Finance’s innovative DeFi integrations.
Unique Liquid Restaking: pufETH offers users the combined advantages of staking ETH on Ethereum 2.0 and earning additional rewards through restaking. This innovative feature differentiates pufETH from traditional stETH tokens.
Significant Adoption and Integration: pufETH boasts a robust presence across various DeFi platforms, including Curve, Pendle, Aerodrome, Zircuit, Pencil, and Karak. Its wide adoption showcases its utility and demand within the DeFi landscape.
Strong DeFi Metrics: Puffer Finance currently maintains an impressive Total Value Locked (TVL) of $1.39 billion in ETH and an additional $641 million across DeFi integrations, reflecting the project’s growing user base and economic activity.
Enhanced Liquidity: pufETH’s $120 million TVL in its pufETH-wstETH pool on Curve demonstrates its ability to attract liquidity, providing Moonwell users with a readily borrowable asset.
Security and Trust: Puffer Finance prioritizes security by undergoing multiple audits by renowned firms, ensuring the safety of user funds. This commitment to security aligns perfectly with Moonwell’s values.
Decentralization Champion: Puffer’s development of anti-slashers for PoS fosters permissionless validator participation, strengthening the decentralization of Ethereum’s staking ecosystem.
Industry-Leading Backing: Prominent investors like Binance Labs, Brevan Howard, Avon Venture (Fidelity), Franklin Templeton, Coinbase Ventures, and Kraken Ventures support Puffer Finance. This backing signifies the project’s potential and long-term vision.
Social channel metrics (size, activity, and growth)*
Twitter: 330,000 followers, active with daily engagement
Discord: 92,500 members, growing steadily with daily community participation and 10%+ retention
Codebase & On-chain Activity
Provide a Github repository for the underlying token contracts
Listing pufETH on moonwell will offer users the ability to borrow against an asset that provides staking and restaking rewards, potentially increasing moonwell’s appeal and liquidity. Given Puffer Finance’s substantial TVL, extensive DeFi integrations, security audits, and backing by top-tier investors, this proposal presents a strategic opportunity for Moonwell to align with a leading-edge DeFi project and expand its asset offerings on Base
Thanks for the application. Are any of the audits for puffer public currently? Also, who manages the roles outlined in the deployment contracts, I would assume all are managed by Puffer, but would like some granularity into the decision making for the role management.
Seeing as though Puffer is only launched on Ethereum, is there plans to migrate to Base as well? I have some concerns about the liquidity of pufETH on Base.
As for Base, yes, we have already launched pufETH on Base alongside Aerodrome, and we are actively working on increasing liquidity through various integrations and partnerships. We’re aware of the initial liquidity concerns and are prioritizing strategies to bolster liquidity on Base to ensure a robust market.
Please let me know if you have any further questions or if there’s additional information I can provide!
Firstly, you’ll benefit from our upcoming voter snapshot rewards. Additionally, holders of pufETH on Base will receive extra Puffer Points . For Moonwell users, we’ve got some exciting incentives lined up!
At Puffer, qe always listen closely to the community’s feedback and are excited to join and support the growth of the Moonwell ecosystem. With our TGE coming soon, it’s a great opportunity to be part of our journey and earn additional rewards. We look forward to building and nourishing the Moonwell community together!
One more thing that I’d like to mention, is there a Chainlink feed for pufETH? There was a different proposal shot down with an ETH variant which lacked a Chainlink feed.
We’re excited to announce that voting is officially live for the proposal to add the pufETH market to Moonwell on Base. This addition aims to expand the Moonwell ecosystem and unlock more opportunities for puffer users !
Given the reliance on market rate oracles on Moonwell, the current liquidity on Aerodrome is insufficient to support significant caps. The pool remains vulnerable to high slippage should the protocol add this asset as collateral.
While the pool demonstrates an acceptable level of LP diversity, the current liquidity remains insufficient to support meaningful supply and borrow caps on the protocol. Gauntlet will provide an updated risk recommendation post changes in market liquidity.
