Puffer Finance's Liquid Restaking Token Depegs by 5%
After nearly a month since its mainnet launch, Puffer Finance's Liquid Restaking token has become a hot topic on social media platform X, experiencing a mild depeg of 5-10%.
According to data from CoinGecko, the price of pufETH (Puffer Finance's Liquid Restaking token) briefly depegged to around 0.9 ETH. However, at the time of writing, the token has quickly rebounded to approximately 0.98 ETH.
Another notable statistic is the current queue time for depositing ETH into the Beacon network, which is 2 days, while the withdrawal queue lasts only 1 minute. This suggests that the demand for exiting ETH staking on the network is not high.
Thus, the depeg can be attributed to the thin initial liquidity of the pufETH token rather than a widespread exit phenomenon.
Currently, there is no information about any technical attack threats against the project. Previously, on February 17, Puffer Finance partnered with Immunefi to announce a bounty program aimed at mitigating technical attack risks and encouraging developers to report product bugs to the project.
We're dedicated to maintaining the highest security standards at Puffer, which is why we've partnered with @immunefi for a Bounty Boost! With $50k in guaranteed rewards and up to $200k for each Critical bug identified, we're inviting all whitehats to help strengthen our defenses!… https://t.co/aLkCHzkTDk
— Puffer Finance 🐡 (@puffer_finance) February 17, 2024
Puffer Finance is a Liquid Restaking project that provides liquidity for Restaking tokens and is built on the EigenLayer foundation. In January 2024, Puffer Finance also announced an investment from Binance Labs. The airdrop frenzy and Restaking wave have quickly attracted significant Total Value Locked (TVL), placing Puffer Finance at the forefront of this metric.
However, alongside rapid growth, there are concerns about potential risks associated with this new product type. The multi-layered structure and liquidity issues are hotly debated within the crypto community on Twitter, focusing on the Liquid Restaking market.
At the time of writing, Puffer Finance has not issued a tweet or detailed announcement regarding this phenomenon. Coin68 will promptly update readers with the latest information.
