Binance Labs Invests in Puffer: Advancing Decentralized Liquid Restaking on Ethereum
Binance Labs, the venture capital and incubation arm of global cryptocurrency exchange Binance, has made a strategic investment in Puffer, a decentralized liquid restaking protocol (nLRP) focused on Ethereum’s ecosystem. This investment marks a significant advancement in the world of liquid staking protocols.
Puffer is an innovative nLRP designed to integrate Ethereum liquid staking with native restaking on EigenLayer, a novel Layer 2 (L2) solution. The investment from Binance Labs aims to support Puffer’s development of open-source technologies, including its nLRP and actively validated services (AVSs), as part of its comprehensive verticalized infrastructure.
Democratizing Ethereum Staking
The main objective of Puffer is to democratize Ethereum staking, which currently involves significant risks and costs that often lead to centralization controlled by institutional entities. Puffer’s protocol aims to make staking more accessible and viable for individual validators, reducing associated risks and costs and fostering a more decentralized and secure blockchain environment.
Puffer has received a grant from the Ethereum Foundation for its Secure-Signer remote signing tool, an innovative technology that reduces the risk of slashing penalties for validators, increasing capital efficiency within the protocol. Puffer also collaborates with leading researchers in the field, such as Ethereum Foundation core researcher Justin Drake, contributing to the protocol’s development and influencing changes in Ethereum’s roadmap.
Integrating EigenLayer as an AVS
Puffer plans to operate its upcoming Layer 2 (L2) network as an EigenLayer actively validated service (AVS). EigenLayer enables the creation of custom L2 networks that function as AVSs, actively validated by a set of staking validators. This integration is expected to produce significant network effects, enhancing rewards for Puffer’s permissionless validators and incentivizing participation while reinforcing Ethereum’s decentralization.
Supporting DeFi Innovation
Binance Labs and its co-founder, Yi He, express enthusiasm for supporting innovative DeFi projects like Puffer in their early stages. The founder of Puffer, Amir Forouzani, highlights the project’s unique approach and its contribution to the future of decentralized trust and a resilient, evolving ecosystem.
Since its inception, Puffer has raised $6.3 million across three funding rounds, with support from notable backers such as Lemniscap, Faction, and Animoca Brands.