Introducing Risk Analytics for Puffer Finance
We’re excited to announce that risk analytics for Puffer Finance are now available on IntoTheBlock’s Risk Radar.
About Puffer Finance
Puffer Finance is a Native Liquid Restaking Protocol (nLRP) built on EigenLayer, providing a dynamic staking platform for Ethereum users. By staking ETH on Puffer, participants not only contribute to securing the ETH network but also boost their yields, thanks to the combined benefits of PoS and EigenLayer AVS’ restaking yields. What truly distinguishes Puffer Finance is its advanced safeguards, offering automatic protection against common risks like slashing and underperforming validators, all while lowering the bond requirement to just 2 ETH for node operators compared to the usual 32 ETH.. This enhanced security enables users to stake with greater confidence and reliability.
The constant innovation from Puffer Finance on Ethereum aims to increase the security and usability of the blockchain for all users. With the introduction of Puffer UniFi, a Based Rollup solution designed to address liquidity fragmentation and streamline transactions, Puffer is becoming a leading innovator in Ethereum infrastructure. Their work on attestations and based rollups places them at the cutting edge of Ethereum blockchain research and technology.
Risk Analytics for Puffer Finance
IntoTheBlock’s Risk Radar is a cutting-edge analytics tool that delivers a holistic view of the risk landscape within the DeFi ecosystem. By harnessing on-chain data, Risk Radar identifies and quantifies economic risk factors associated with DeFi protocols.
With Puffer Finance now featured on Risk Radar, users can access crucial insights into the specific risks tied to their positions. The dashboard offers 16 indicators, designed through our extensive collaboration with institutional investors.
While these tools are vital for professionals engaged in DeFi, retail users can also benefit from these insights to better understand and manage risk.
Practical Example: Monitoring Liquidity Risk
One key risk to monitor is the liquidity of pufETH on decentralized exchanges (DEXes). A sudden drop in liquidity can significantly affect your ability to exit positions. Our indicators provide a clear view of total pufETH liquidity and its concentration among liquidity providers. It’s crucial to watch for significant liquidity declines or overly concentrated liquidity, as large exits by major liquidity providers (whales) could heighten risk. Currently, the liquidity of pufETH appears stable and healthy.
The dashboard includes many more indicators to explore, such as pufETH supply flows, peg monitoring, staking entry & exit queues, and more.
Explore the Puffer Finance Risk Radar here: https://defirisk.intotheblock.com/metrics/ethereum/puffer
