According to The Block, Binance Labs, the investment and incubation department of the 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) operated by EigenLayer. Additionally, Binance Labs mentioned that 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 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 round financing and raised $650,000 in a pre-seed round.
Puffer had previously 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 through the platform. A spokesperson from Binance Labs stated that Puffer’s mainnet is expected to go live “soon.” Puffer did not immediately respond to The Block’s request for comments.
Related reports: “Analyzing the Business Logic and Valuation Estimation of EigenLayer, the Leader of Re-collateralization” and “The Noteworthy Risks behind the Re-collateralization Narrative.”
