Binance Labs, the $10 billion venture capital and incubation arm of crypto exchange Binance, has invested an undisclosed sum in Solayer, a restaking protocol for Solana. This investment aligns with Binance Labs’ strategy of expanding its presence in the staking and restaking sectors of the cryptocurrency industry.
In recent months, Binance Labs has also backed various staking projects across multiple ecosystems, including Ethereum, Bitcoin, and Berachain. Notable investments include Ethereum liquid restaking protocols like Puffer Finance and Renzo, Bitcoin staking protocol Babylon, and Berachain liquid staking protocol Infrared.
Solayer is a restaking protocol on the Solana network, similar to EigenLayer, a pioneering restaking protocol for Ethereum. Restaking allows users to earn additional rewards by locking up their staked assets in various protocols, known as actively validated services (AVSs), to maximize returns. For Solana (SOL) restaking, Solayer initially converts SOL into an intermediary form called sSOL-raw, a liquid staking token (LST) issued by the stake pool manager. The sSOL-raw is then further converted into sSOL after interacting with the Solayer restaking pool manager.
Since its launch, Solayer has quickly become the 13th largest protocol on Solana, with over $150 million in total value locked (TVL) and more than 79,000 depositors. The new investment from Binance Labs will help Solayer scale its team and integrate additional protocols into its ecosystem.
