According to a report by “The Block,” Binance Labs, the venture capital and incubation department of cryptocurrency exchange Binance, has invested in Puffer Finance, an Ethereum-based liquidity re-collateralization protocol built on EigenLayer. In a press release issued on Tuesday (30th), Binance Labs did not disclose the investment amount but stated that Puffer will use the funds to develop its Layer 2 network as an Actively Validated Service (AVS) for EigenLayer. Additionally, Binance Labs mentioned that the funds will also be used to launch Puffer’s native liquidity re-collateralization token, pufETH, for BNB Chain users, enabling them to earn staking and restaking rewards.
Prior to the investment from Binance Labs, Puffer had already raised funds from other well-known investment institutions such as Brevan Howard Digital, Jump Crypto, and Lightspeed Faction. In August of last year, the protocol completed a $5.5 million seed funding round and previously raised $650,000 in a pre-seed funding round.
Puffer also received a $120,000 grant from the Ethereum Foundation for its open-source tool called “Secure-Signer,” which allows Ethereum validators to reduce the risk of penalties and slashing.
Currently, Puffer is running a scoring system that rewards users who participate in re-collateralization on its platform. A spokesperson for Binance Labs stated that Puffer’s mainnet is expected to go live “soon,” and Puffer did not immediately respond to The Block’s request for comment.
Related reports: “Analyzing the Leader of Re-collateralization: The Business Logic and Valuation Deduction of EigenLayer” and “The Notable Risks Behind the Narrative of Re-collateralization.”
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