How to stake Puffer (PUFFER) & Vote
Guides · 5 Minute Read · Written by @Jordan
What is Puffer?
The PUFFER token is the native governance token of the Puffer Protocol and UniFi ecosystem.
Prerequisites
Where to buy PUFFER
You can get PUFFER tokens at a number of cryptocurrency exchanges, at a DEX, or within selected wallets. You should always do your own research when selecting a reputable cryptocurrency exchange. For best security, it is not recommended to leave your tokens on an exchange, but transfer them to your non-custodial or cold/hardware wallet after procuring them.
PUFFER wallets
PUFFER has a variety of non-custodial wallets for you to choose from. We recommend using a hardware wallet such as Ledger otherwise we suggest using Metamask or Rabby.
How to stake PUFFER
Stage 1: Make sure you have a Metamask wallet
Although we recommended using a hardware wallet for additional security, in this guide we will be using popular web3 wallet, Metamask. This browser wallet enables you to access various blockchains, blockchain apps, manage and stake mutiple tokens.
Once you have installed the Metamask extension you need to deposit your tokens into this wallet before advancing to stage 2.
Stage 2: Go to Puffer Finance and connect to Metamask
- Go to the Puffer Governance Staking Page and you will be prompted to select a wallet
- Click on Metamask
- Click on ‘Next’ and then ‘Connect’
Stage 3: Finalize the transaction
After connecting your Metamask wallet, start staking:
- Enter the number of tokens you want to stake
- Click stake
You’ll need ETH for gas fees, these fees fluctuate depending on Ethereum’s current network activity. You can check current gas fees but as a minimum we recommend 0.01 ETH.
Staked PUFFER? Now what…
Congratulations! You’ve staked and will be able to see vePUFFER in your wallet. Your voting power will immediately start accruing but will take between 3-10 days before it becomes visible in the dashboard. Let’s now look at how you can participate in Puffer Governance and help steer the direction of the Puffer DAO and Protocol.
What is vePUFFER?
vePUFFER is a novel ve (voting escrow) governance mechanism implemented as an ERC-721 token, developed in collaboration with Aragon. It’s designed to align with Puffer’s long-term goal of fostering value-aligned and committed participants in the ecosystem.
Key features of vePUFFER:
- Users stake PUFFER tokens to mint vePUFFER NFTs
- Voting power accrues over time as long as PUFFER remains staked
- No fixed lockup duration is required (subject to prevailing cooldown/warmup conditions)
- Users can unstake their PUFFER anytime after the subsequent cooldown periods.
vePUFFER Parameters
These are the initial vePUFFER parameters, which can be changed by the PUFFER community through future governance proposals.:
How is vePUFFER different from other ve tokens?
vePUFFER builds on learnings from protocols like Curve and Prisma, but introduces several key innovations:
- Flexible staking: Unlike traditional ve tokens, vePUFFER doesn’t require users to specify a lockup duration.
- Dynamic voting power: Voting power increases over time, rewarding long-term engagement without forcing users into rigid lockups.
- Reset mechanism: Unstaking resets the accrued voting power, creating a balance between long-term incentives and flexibility.
- NFT-based: Implemented as ERC-721 tokens, providing unique possibilities for governance participation.
- Incentivizes long-term engagement: The accruing voting power mechanism rewards users for sustained participation in the protocol.
- Flexible stake management: Users can adjust their stake based on personal or market conditions while still participating in governance.
How Voting Power Accrues
The vePUFFER NFT will begin accruing voting power on a weekly cadence. After the warmup period (three days), you will be able to begin voting.
Maximum voting power
The Maximum boost on initial deposit that will be reached if a user leaves staked tokens in, indefinitely is 2x and it takes two years to reach this the max multiplier following a linear increasing curve:
We believe that this mechanism empowers users to actively shape the future of the Puffer ecosystem through voting rights, kickstarting true decentralization and community-led governance within the Puffer ecosystem.
How to Vote
Proposals are first created and discussed on the Governance Forum and then posted to the Puffer DAO Hub for voting.
- Navigate to vote.puffer.fi
- Connect your wallet
- View proposals on the Latest proposals window or via the Community tab
- Vote on proposals by clicking the
Votebutton
The proposal passes unless rejections outnumber approvals after the voting period has ended. Specifically, a proposal is approved if:
- Approvals exceed or equal rejections
- No votes are cast (effectively treated as equal approvals and vetoes)
Congratulations! You’re now staked and able to participate in Puffer Governance to help steer the direction of the DAO & Protocol. If you have any further questions, you can contact @Jordan via this governance forum or our team in the Puffer discord.