Puffer Financea infrastructure provider for Ethereumhas completed a 5.5 million round of financing co-managed by Lemniscap and Lightspeed Faction.
Puffer Finance is on a mission to preserve decentralization on Ethereum. In particular, the startup has designed anti-slashing technologies “Anti-slashing technologies minimize the risk of slashing events for validators. Slashing, a type of penalty, results in the forced withdrawal of a validator from the network, associated with the loss of a portion of his staked ethers.
Tuesday, Puffer Finance said it had raised 5.5 million dollars in a financing round led by crypto-native VCs Lemniscap and Lightspeed Faction – a joint venture of the American Lightspeed. Other investors include the crypto subsidiary of hedge fund Brevan Howard, BH Digital as well as Bankless Ventures, Animoca and Canonical.
The funds raised will enable Puffer Finance to accelerate the development of Secure-Signerits Ethereum Foundation-supported tool that helps validators avoid committing “slashable violations”. The creation of a staking pool A “trustless and capital-efficient” staking pool is also on the agenda. The start-up is also working on a protocol to lower the barrier to entry for the solo-staking.
Secure-Signer significantly mitigates operational risks associated with user errors and customer bugs, providing Best-in-Class security for validators. The low capital requirement of 2 ETH is a game changer in terms of broadening the accessibility of revenue streams,” commented Roderik van der Graaf, founder of Lemniscap, in a statement.
Puffer Finance had previously raised capital from Jump Crypto, IoTeX and Acanam Capital. As mentioned above, the project had also received a grant ($120,000) from the Ethereum Foundation.
Validation operators should consider Puffer’s SGX-based secure signer – at least until we get unique signatures,” advised Ethereum foundation researcher Justin Drake.
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