Binance Labs, the renowned $10 billion venture capital and incubation division of cryptocurrency exchange Binance, has made a strategic investment in Puffer Finance, an Ethereum liquid restaking protocol operating on EigenLayer. While the exact investment figure remains undisclosed, Binance Labs revealed that the funding will propel Puffer’s Layer 2 network development, functioning as an EigenLayer Actively Validated Service.
Moreover, the investment will facilitate the introduction of Puffer’s proprietary liquid restaking token, pufETH, to BNB Chain users, offering them opportunities to earn staking and restaking rewards. This move underscores Binance Labs’ commitment to fostering innovation within the Ethereum restaking sector.
Puffer’s alliance with Binance Labs coincides with a surge in momentum within the Ethereum restaking vertical, catalyzed by EigenLayer’s inception last June. ClayStack’s recent foray into Ethereum restaking via EigenLayer, along with the beta launch of EigenLayer-based Renzo Protocol, reflects the growing traction within the ecosystem. EigenLayer currently boasts a Total Value Locked (TVL) exceeding $2 billion, as per DeFi Llama data.
Puffer’s distinctive approach to Ethereum liquid staking, coupled with native restaking on EigenLayer to augment rewards, demonstrates its innovative edge. Co-founder and CTO Jason Vranek elaborated on the strategy, highlighting the integration of Ethereum validator assets with Eigenlayer applications.
Prior to Binance Labs’ investment, Puffer garnered support from prominent investors such as Brevan Howard Digital, Jump Crypto, and Lightspeed Faction, raising substantial funding rounds. Notably, the project received a grant worth $120,000 from the Ethereum Foundation for its Secure-Signer tool, mitigating risks associated with slashing or penalties.
As Puffer gears up for its mainnet launch, characterized by a user reward points system, anticipation mounts within the crypto community. While specifics regarding the mainnet rollout remain undisclosed, Puffer’s impending debut heralds a significant milestone in Ethereum’s liquid restaking landscape, underpinned by Binance Labs’ strategic backing.
