Published on February 12, 2024 14:39 GMT+00:00edited on February 12, 2024 14:44 GMT+00:00

The total amount of value locked in Ethereum liquid restaking protocol Puffer Finance has reached $850 million, making it the second-largest protocol of its kind.

Puffer Finance, which launched on Feb. 1, lets users deposit ether and receive a liquid staking token that earns yield from ETH staking and restaking (where the same ETH is staked with multiple protocols to get extra yield). 

On its first day, Puffer Finance saw a TVL of $146 million, according to DefiLlama. A few days later it had overtaken similar projects Renzo and Kelp DAO to break into second place among liquid restaking protocols. On Feb. 10 it passed the $850 mark and remains not far off the market leader ether.fi, which has $1.04 billion in TVL — a figure that has been increasing exponentially.

To encourage …