- Binance Labs has invested an undisclosed amount in Ethereum re-staking protocol Puffer.
- Puffer Finance will use these funds to develop a layer 2 network and provide ETH staking and re-staking rewards to BNB Chain users.
- On Monday, January 29, Binance Labs denied claims that it participated in the $15 million funding round for SkyArk Chronicles.
Binance Labs, a venture capital and incubation organization Cryptocurrency exchange BinanceMade a strategic investment in Puffer Finance, EigenLayer’s decentralized liquidity re-staking protocol.
Binance Labs did not disclose the amount of the investment, but Puffer announced that it would use the investment to develop open source technology.
Today’s announcement comes a day after Binance Labs. issued a statement It is distancing itself from claims that it led a $15 million funding round for gaming platform SkyArk Chronicles.
Puffer reuses investments and rewards for L2.
One of the project areas that could secure investment funding will be Puffer’s Actively Verified Service (AVS) on Layer 2 networks. Puffer will run the upcoming L2 from EigenLayer AVS to AVS, Binance Labs said on Tuesday.
“As Puffer continues to evolve, our unique approach, supported by collaborations with renowned researchers, will increase validator profitability, contribute to Ethereum’s decentralization, and secure its infrastructure through EigenLayer.Amir Forouzani, founder of Puffer, said in a statement:
“We are excited to lay a strong foundation for the future of decentralized trust and ensure 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 securitized restaking technology, where the protocol’s native securitized restaking token will be activated on the BNB chain. The goal here is to provide ETH staking and re-staking rewards to users on the BNB chain.
🚀 Great news! @BinanceLabsventure capital sector @BinanceWe made a strategic investment in Puffer.
This collaboration marks a milestone in decentralized liquid staking, laying the foundation for a powered and accessible Ethereum ecosystem through EigenLayer technology! 🐡 https://t.co/oL4xDWi22A
— Puffer Finance 🐡 (@puffer_finance) January 30, 2024
Puffer has previously received funding from various venture firms in pre-seed and seed rounds. Among the protocol’s investors Seed round of $5.5 million They included 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 called Secure-Signer. Validators on the Ethereum network can utilize this tool to reduce the risk of slashing.