Binance Labs Invests in Puffer: Advancing Ethereum Decentralization 

Bits Logics Team . 30th Jan 2024

• Binance Labs has recently invested in Puffer, a decentralized and permissionless native liquid restaking protocol (nLRP).
• The funds from Binance Labs will be utilized to further develop Puffer’s open-source technologies.
• Puffer’s mission is to democratize Ethereum staking by significantly reducing operational risks and costs associated with validation.

Binance Labs, the venture capital and incubation arm of Binance, has recently invested in Puffer, a groundbreaking decentralized and permissionless native liquid restaking protocol (nLRP). Puffer combines Ethereum liquid staking with native restaking on EigenLayer, offering a solution to the high costs and risks faced by Ethereum validators. The funds from Binance Labs will be utilized to further develop Puffer’s open-source technologies, including its nLRP, and novel actively validated services (AVSs), as well as its Layer 2 (L2) infrastructure.

Puffer’s mission is to democratize Ethereum staking by significantly reducing operational risks and costs associated with validation, thereby making it a viable option for at-home validators. The project received recognition from the Ethereum Foundation, which granted Puffer for its first innovation – the Secure-Signer remote signing tool. This tool enables validators to mitigate the risk of slashing while enhancing capital efficiency within Puffer’s protocol.

Yi He, Co-Founder of Binance and Head of Binance Labs, expressed support for innovative DeFi projects in their early stages. Binance Labs looks forward to collaborating closely with Puffer’s founders to foster their long-term growth.

Puffer’s unique approach is rooted in collaboration with renowned researchers, including Ethereum Foundation core researcher Justin Drake. The company has contributed to security research, with publications used by other projects like Scroll and influencing changes to the Ethereum roadmap.

As part of its strategic plan, Puffer intends to run its upcoming Layer 2 (L2) as an EigenLayer AVS. This move is expected to generate network effects, benefiting from economic security and reinforcing decentralization. By integrating EigenLayer, Puffer aims to increase rewards for permissionless validators, encouraging participation and contributing to Ethereum’s decentralization.

Amir Forouzani, Founder of Puffer, stated, “As Puffer continues to develop, our unique approach, supported by collaborations with eminent researchers, elevates validator profitability, contributing to Ethereum’s decentralization and securing its infrastructure with EigenLayer. We are incredibly excited about laying a robust foundation for the future of decentralized trust, ensuring a resilient and thriving ecosystem for years to come.”

In summary, Binance Labs’ investment in Puffer reflects a commitment to supporting innovative DeFi projects and addresses the challenges faced by Ethereum validators, ultimately contributing to the decentralization and resilience of the Ethereum ecosystem.