According to a report by “The Block”, Binance Labs, the venture capital and incubation arm of the cryptocurrency exchange Binance, has invested in the Ethereum liquidity re-collateralization protocol Puffer Finance, built on EigenLayer. In a press release issued on Tuesday, Binance Labs did not disclose the amount of the investment, but stated that Puffer will use the funds to develop its Layer 2 network as part of EigenLayer’s Actively Validated Service (AVS) operation. Additionally, the funds will also be used to introduce Puffer’s native liquidity re-collateralization token pufETH to BNB Chain users, allowing them to earn staking and restaking rewards.
Prior to the investment from Binance Labs, Puffer had already raised funds from other prominent 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 round of financing and had previously raised $650,000 in a pre-seed round.
Puffer had also received a $120,000 grant from the Ethereum Foundation for its open-source tool called “Secure-Signer”, which enables Ethereum validators to reduce penalties and risks.
Currently, Puffer is operating a scoring system that rewards users who participate in re-collateralization through the platform. A spokesperson from Binance Labs stated that Puffer’s mainnet is expected to go live “soon”, but Puffer did not immediately respond to The Block’s request for comment.
Related reports: “Analyzing the Business Logic and Valuation Estimation of EigenLayer, the Leader of Re-collateralization” and “The Narrative of Re-collateralization Draws Attention, What are the Unignorable Risks Behind?”