Binance Labs has invested an undisclosed amount in Ethereum restaking protocol Puffer.
Puffer Finance will use these funds to develop its Layer 2 network and to bring ETH staking and restaking rwards to BNB Chain users.
Binance Labs on Monday, January 29, denied claims it had participated in a $15 million funding round for SkyArk Chronicles.
Binance Labs, the venture capital and incubation arm of crypto exchange Binance, has made a strategic investment in Puffer Finance, a decentralised liquid restaking protocol on EigenLayer.
Although Binance Labs hasn’t disclosed the invested amount, it revealed in its announcement that Puffer will use the investment to develop its open-source technologies.
Today’s announcement comes a day after Binance Labs released a statement distancing itself from claims that it had led a $15 million funding round for gaming platform SkyArk Chronicles.
Puffer to use investment on its L2 and restaking rewards
One of the project areas to see funding from the investment will be Puffer’s actively validated services (AVSs) on a Layer 2 network. Puffer will run its upcoming L2 as an AVS on EigenLayer AVS, Binance Labs said on Tuesday.
“As Puffer continues to develop, our unique approach, supported by collaborations with eminent researchers, elevates validator profitability, contributing to Ethereum’s decentralization and securing its infrastructure with EigenLayer,” Amir Forouzani, founder of Puffer, said in a statement.
“We are incredibly excited about laying a robust foundation for the future of decentralized trust, ensuring a resilient and thriving ecosystem for years to come,” Forouzani added.
Also set to receive a boost from Binance’s venture arm is Puffer’s liquid restaking technology that will see the protocol’s native liquid restaking token go live on the BNB Chain. The target here is to bring ETH staking and restaking rewards to users on the BNB Chain.
🚀 HUGE news! @BinanceLabs, the venture capital arm of @binance, has made a strategic investment in Puffer.
This collaboration marks a milestone in decentralized liquid staking, setting the stage for a fortified, accessible Ethereum ecosystem through EigenLayer tech! 🐡 https://t.co/oL4xDWi22A
— Puffer Finance 🐡 (@puffer_finance) January 30, 2024
Puffer has previously received investment funding from various venture firms, both during its pre-seed and seed round. Among investors in the protocol’s $5.5 million seed round were Lemniscap, Lightspeed Faction, Brevan Howard Digital, Animoca Ventures, Canonical Crypto and Bankless Ventures.
The project also secured a grant from the Ethereum Foundation for its first innovation – a remote signing tool dubbed Secure-Signer. Validators on the Ethereum network can tap into this tool to reduce risk of slashing.