Binance Labs, the venture capital and incubation arm of cryptocurrency exchange Binance, has made a strategic investment in Puffer Finance, a decentralized liquid restaking protocol on EigenLayer. The exact amount of the investment has not been disclosed, but Binance Labs stated that the funds will be used to further develop Puffer’s open-source technologies.
This announcement comes after Binance Labs released a statement denying their involvement in a $15 million funding round for gaming platform SkyArk Chronicles.
Puffer Finance plans to use the investment to develop their actively validated services (AVSs) on a Layer 2 network. Puffer’s upcoming Layer 2 will be run as an AVS on EigenLayer AVS, according to Binance Labs.
Amir Forouzani, the founder of Puffer, expressed excitement about the partnership and the potential for Puffer’s unique approach to increase validator profitability and contribute to the decentralization and security of Ethereum’s infrastructure.
The investment will also support Puffer’s liquid restaking technology, which will allow for the protocol’s native liquid restaking token to go live on the BNB Chain. This will bring ETH staking and restaking rewards to users on the BNB Chain.
Puffer has previously received investments from various venture firms during its pre-seed and seed rounds, including Lemniscap, Lightspeed Faction, Brevan Howard Digital, Animoca Ventures, Canonical Crypto, and Bankless Ventures. The project also received a grant from the Ethereum Foundation for its first innovation, a remote signing tool called Secure-Signer, which helps reduce the risk of slashing for validators on the Ethereum network.
In addition to Binance Labs, Puffer has also received investments from these various firms, indicating confidence in the project’s potential.
Finally, to share this exciting news, Puffer Finance shared a tweet announcing the investment from Binance Labs and highlighting the potential of this collaboration for decentralized liquid staking.
With this partnership, Binance Labs and Puffer Finance are setting the stage for a fortified and accessible Ethereum ecosystem through EigenLayer technology.
