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Stakers and NoOps can earn more due to native restaking.

Rewards Overview

The protocol receives rewards from the validator tickets minted to run validators and from restaking rewards generated by restaking operators as they operate AVSs. Together, these rewards increase the amount of ETH backing pufETH, increasing the conversion rate between the two and thus the value of pufETH. This section will outline how rewards are distributed among the protocol's participants.

Who Gets Rewards?


  • They earn PoS and restaking rewards by holding the pufETH nLRT.


Restaking Operators


  • They get fees for doing their jobs and to help with their gas costs.

Puffer Protocol

  • It gets a fee to support its growth and to give the governance token more utility.

Rewards Breakdown

Consensus Rewards

Due to validator tickets, NoOps receive 100% of consensus rewards. These consensus rewards are directed to the withdrawal credentials which will, in this case, be the module's EigenPod. However, these rewards are not immediately accessible for withdrawal. After a delay, NoOps can withdraw their consensus rewards using a merkle rewards tree.

EigenLayer Partial Withdrawals Proofs are being improved 🚧

Currently it is cost-prohibitive to withdraw consensus rewards from EigenPods but the EigenLayer team is working to decrease these costs. Until then, withdrawing consensus rewards is temporarily disabled.

Execution Rewards

Thanks to validator tickets, NoOps also receive 100% of execution rewards. This arrangement grants NoOps full control over their MEV (Maximal Extractable Value) strategy, without any mandatory software constraints such as MEV-Boost, allowing for potentially more censorship resistance. Execution rewards are immediately liquid as they are routed automatically to the NoOps' specified wallet using their own fee_recipient address.

Restaking Rewards

Restaking rewards are the fees derived from operating AVSs. While some protocols, like EigenDA, remit their payments in ETH and are straightforward to manage, others might use ERC20 tokens for payment. In such cases, these ERC20 rewards must be converted into ETH before being distributed to the Puffer protocol's participants.

EigenLayer Specs not finalized 🚧

EigenLayer is in active development with more detailed information regarding AVS payments coming soon.

Validator Tickets

Validator Tickets cost ETH to mint and are allocated as follows:

  • Guardians are paid a fee to incentivize honest behavior and cover gas-fees.
  • The treasury is allocated a portion as a protocol fee.
  • Stakers get the remainder deposited to the PufferVault.