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Copy file name to clipboardExpand all lines: docs/yield/burst-threshold.md
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@@ -9,8 +9,8 @@ The Burst Threshold is Puffer's commitment to Ethereum's Ethos.
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### Burst Threshold
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Puffer is [committed to self-capping](https://x.com/puffer_finance/status/1697817894900711700?s=20) its validator marketshare to \(22\%\) of Ethereum's validator set, which we refer to as the protocol's _Burst Threshold_. Instead of abruptly pausing staking and NoOp registration once the burst threshold is reached, Puffer introduces a mechanism to organically reduce staker demand as the protocol reaches the threshold.
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Puffer is [committed to self-capping](https://x.com/puffer_finance/status/1697817894900711700?s=20) its validator marketshare to 22\% of Ethereum's validator set, which we refer to as the protocol's _Burst Threshold_. Instead of abruptly pausing staking and NoOp registration once the burst threshold is reached, Puffer introduces a mechanism to organically reduce staker demand as the protocol reaches the threshold.
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As the protocol reaches \(22\%\), the number of mintable validator tickets will be reduced such that it can only sustain existing validators but not new ones.
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As the protocol reaches 22\%, the number of mintable validator tickets will be reduced such that it can only sustain existing validators but not new ones.
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This pledge is critical to ensure that the Puffer protocol never breaches the [dangerous consensus threshold of \(33\%\)](https://x.com/dannyryan/status/1688644951230267392?s=46&t=bsdBaPIHlTHEWDDdVUJW4g), which threatens the stability of Ethereum. We firmly believe that the burst threshold must be included from day one rather than after the protocol is profitable.
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This pledge is critical to ensure that the Puffer protocol never breaches the [dangerous consensus threshold of 33\%](https://x.com/dannyryan/status/1688644951230267392?s=46&t=bsdBaPIHlTHEWDDdVUJW4g), which threatens the stability of Ethereum. We firmly believe that the burst threshold must be included from day one rather than after the protocol is profitable.
Copy file name to clipboardExpand all lines: docs/yield/faq.md
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### 🐊 Why don't other permissionless pools reduce their bond requirement to 2 ETH?
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> Reducing the bond requirement [increases node and staker risk](slash.md#liquid-staking-protocol-considerations) which Puffer mitigates through [Guardian support](./guardians.md). Also as the bond requirement decreases, the threat of "rug-pooling" increases, which Puffer's [Validator Tickets](/yield/protocol/validator-tickets#why--noop-incentives) address.
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> Reducing the bond requirement [increases node and staker risk](slash.md#liquid-staking-protocol-considerations) which Puffer mitigates through [Guardian support](./guardians.md). Also as the bond requirement decreases, the threat of "rug-pulling" increases, which Puffer's [Validator Tickets](/yield/protocol/validator-tickets#why--noop-incentives) address.
Copy file name to clipboardExpand all lines: docs/yield/hardforks.md
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@@ -10,7 +10,7 @@ its consensus layer to proof-of-stake (PoS). Validators replaced miners as the a
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the consensus protocol. This transition shifted the limiting resource from electricity and computational
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power to pure capital (32 ETH), significantly reducing Ethereum's energy footprint.
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The core principle of PoS is that validators with \(32\) ETH staked (worth approximately $60,000 USD at the time of writing) are incentivized to perform their consensus duties honestly or risk forfeiting their collateral or bond. The high capital requirement should make it infeasible for a centralized entity to acquire more than two-thirds of the validator set (a critical consensus threshold).
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The core principle of PoS is that validators with 32 ETH staked (worth approximately $60,000 USD at the time of writing) are incentivized to perform their consensus duties honestly or risk forfeiting their collateral or bond. The high capital requirement should make it infeasible for a centralized entity to acquire more than two-thirds of the validator set (a critical consensus threshold).
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Validators are incentivized to participate through consensus and execution rewards. Consensus rewards are earned by performing duties like attesting to the validity of proposed blocks and vary depending on factors like the validator's performance. Execution rewards are earned when the validator is randomly selected to propose a new block.
-`deposits` and `pufETH supply` increase proportionally as stakers deposit ETH to mint pufETH, leaving the `conversion rate` unaffected.
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-`rewards` increase as [restaking operators](/yield/protocol/puffer-modules#restaking-operators) run AVSs and whenever validator tickets are minted.
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-`penalties` accrue if validators are slashed on PoS for more than their \\(1\\) ETH collateral, which is [disincentivized behavior](/yield/protocol/validator-tickets#why--noop-incentives). Penalties can also accrue if the restaking operator is slashed running AVSs, which is why Puffer is [restricting restaking operator participation](/yield/protocol/puffer-modules#restricting-reops) during its nascent stages.
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-`penalties` accrue if validators are slashed on PoS for more than their $1$ ETH collateral, which is [disincentivized behavior](/yield/protocol/validator-tickets#why--noop-incentives). Penalties can also accrue if the restaking operator is slashed running AVSs, which is why Puffer is [restricting restaking operator participation](/yield/protocol/puffer-modules#restricting-reops) during its nascent stages.
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#### Example
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At the protocol's inception, Bob stakes \\(10\\) ETH and receives \\(10\\) pufETH. Then, after some time, the protocol earns \\(2\\) ETH of rewards by minting validator tickets and restaking. Now Bob's \\(10\\) pufETH is backed by \\(12\\) ETH, making the conversion rate \$
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\\frac{10+2-0}{10}=1.2\
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$ ETH per pufETH.
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At the protocol's inception, Bob stakes $10$ ETH and receives $10$ pufETH. Then, after some time, the protocol earns $2$ ETH of rewards by minting validator tickets and restaking. Now Bob's $10$ pufETH is backed by $12$ ETH, making the conversion rate $$\frac{10+2-0}{10}=1.2$$ ETH per pufETH.
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Assuming Charlie decides to stake \\(1\\) ETH, he would mint \$
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\\frac{1}{1.2} = 0.83\
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$ pufETH due to the increased conversion rate. Since Charlie deposited instead of adding rewards, the conversion rate remains unchanged at \$
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\\frac{11 + 2 - 0}{10.83} = 1.2\
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$ ETH per pufETH.
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Assuming Charlie decides to stake $1$ ETH, he would mint $$\frac{1}{1.2} = 0.83$$ pufETH due to the increased conversion rate. Since Charlie deposited instead of adding rewards, the conversion rate remains unchanged at $$\frac{11 + 2 - 0}{10.83} = 1.2$$ ETH per pufETH.
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Bob can redeem his \\(10\\) pufETH for \\(10*1.2=12\\) ETH, given there is enough liquidity in the PufferVault and the daily withdrawal limit has not been reached.
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Bob can redeem his $10$ pufETH for $10 \times 1.2 = 12$ ETH, given there is enough liquidity in the PufferVault and the daily withdrawal limit has not been reached.
Copy file name to clipboardExpand all lines: docs/yield/overview.md
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@@ -45,10 +45,6 @@ To register a new validator, NoOps deposit [validator tickets](/yield/protocol/v
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- Safeguard staker ETH
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- Increase NoOp profit margins
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{/* MDX-BLOCK-START */}
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{/* MDX-BLOCK-START */}
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{/* MDX-BLOCK-START */}
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{/* MDX-BLOCK-START */}
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To ensure the safety of stakers, NoOps must distribute their encrypted validator keyshares to the Guardians' [enclaves](/yield/reference/glossary#enclave), allowing them to eject the NoOps if their validator balance falls too low or they run out of validator tickets. This requirement is to protect stakers and it will be [upgraded to a trustless solution](/yield/protocol/guardians#roadmap-to-decentralization) once Ethereum's protocol allows it via [EIP-7002](https://eips.ethereum.org/EIPS/eip-7002).
Copy file name to clipboardExpand all lines: docs/yield/purchase-vt-using-safe.md
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@@ -37,10 +37,6 @@ Validator Tickets (VTs) allow you to participate in the Puffer Protocol as a nod
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7. Return to the Puffer LaunchPad. You should now see your Safe wallet connected and ready to purchase VTs. Click on `Continue` to move to the next step.
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