Binance Invests in Puffer Finance’s Liquid Restaking Protocol

Binance’s venture arm has invested an undisclosed amount in the Ethereum-based liquid restaking protocol Puffer Finance, which operates on EigenLayer.

We’ve invested in @puffer_finance!

Puffer is a decentralized and permissionless native liquid restaking protocol (nLRP) that combines Ethereum liquid staking with native restaking on EigenLayer.

Read more?https://t.co/O2jjMS0sUa

— Binance Labs Fund (@BinanceLabs) January 30, 2024

The project will use the funds to develop a second-layer network that will function as an “actively validated service” on EigenLayer. 

Puffer plans to launch a native token, pufETH, which will be available to BNB Chain users as rewards for staking and restaking. 

Additionally, the developers will reduce the collateral requirement for validators from 32 ETH to 2 ETH.

“This collaboration marks a significant milestone in decentralized liquid staking, laying the foundation for a strengthened and accessible Ethereum ecosystem through EigenLayer technology,” stated the Puffer team. 

The project has already attracted funding from other major investors, including Brevan Howard Digital, Jump Crypto, and Lightspeed Faction. In August 2023, Puffer closed a seed round of $5.5 million. 

Previously, the startup received $650,000 in initial funding and a $120,000 grant from the Ethereum Foundation. 

“By lowering entry barriers, anyone can launch a Puffer node from their home to manage Web3 infrastructure and play a key role in shaping a censorship-resistant network,” emphasized Puffer Finance co-founders Amir Forouzani and Jason Vranek.

Earlier in January 2024, the institution-focused staking platform Kiln closed a $17 million funding round led by 1kx.