Binance Labs invests in Ethereum liquid restaking protocol Puffer

• Binance Labs has invested an undisclosed quantity in Ethereum restaking protocol Puffer.
• Puffer Finance will use these funds to develop its Layer 2 community and to convey ETH staking and restaking rwards to BNB Chain customers.
• Binance Labs on Monday, January 29, denied claims it had participated in a $15 million funding spherical for SkyArk Chronicles.

Binance Labs, the enterprise capital and incubation arm of crypto trade Binance, has made a strategic funding in Puffer Finance, a decentralised liquid restaking protocol on EigenLayer.

Though Binance Labs hasn’t disclosed the invested quantity, it revealed in its announcement that Puffer will use the funding to develop its open-source applied sciences. 

As we speak’s announcement comes a day after Binance Labs launched an announcement distancing itself from claims that it had led a $15 million funding spherical for gaming platform SkyArk Chronicles.

Puffer to make use of funding on its L2 and restaking rewards

One of many venture areas to see funding from the funding will probably be Puffer’s actively validated providers (AVSs) on a Layer 2 community. Puffer will run its upcoming L2 as an AVS on EigenLayer AVS, Binance Labs stated on Tuesday.

“As Puffer continues to develop, our distinctive strategy, supported by collaborations with eminent researchers, elevates validator profitability, contributing to Ethereum’s decentralization and securing its infrastructure with EigenLayer,” Amir Forouzani, founding father of Puffer, stated in an announcement.

“We’re extremely enthusiastic about laying a strong basis for the way forward for decentralized belief, guaranteeing a resilient and thriving ecosystem for years to come back,” Forouzani added.

Additionally set to obtain a lift from Binance’s enterprise arm is Puffer’s liquid restaking expertise that can see the protocol’s native liquid restaking token go dwell on the BNB Chain. The goal right here is to convey ETH staking and restaking rewards to customers on the BNB Chain.

🚀 HUGE information! @BinanceLabs, the enterprise capital arm of @binance, has made a strategic funding in Puffer.

This collaboration marks a milestone in decentralized liquid staking, setting the stage for a fortified, accessible Ethereum ecosystem via EigenLayer tech! 🐡 https://t.co/oL4xDWi22A

— Puffer Finance 🐡 (@puffer_finance) January 30, 2024

Puffer has beforehand obtained funding funding from numerous enterprise companies, each throughout its pre-seed and seed spherical. Amongst traders within the protocol’s $5.5 million seed spherical had been Lemniscap, Lightspeed Faction, Brevan Howard Digital, Animoca Ventures, Canonical Crypto and Bankless Ventures.

The venture additionally secured a grant from the Ethereum Basis for its first innovation – a distant signing instrument dubbed Safe-Signer. Validators on the Ethereum community can faucet into this instrument to cut back threat of slashing.