Puffer will launch a liquid restaking token on BNB Chain and deploy a Layer 2 secured by EigenLayer.
Binance Labs, the enterprise capital arm of the main centralized change, introduced an funding in Puffer, a challenge bringing Ethereum liquid restaking onto BNB Chain.
The funds will likely be used to construct out Puffer’s infrastructure, open-source know-how, and Layer 2 community. Puffer’s L2 will likely be secured by EigenLayer, the pioneering restaking protocol, working as an actively validated service (AVS).
“Puffer will carry its native liquid restaking token (nLRT) to BNB Chain customers to allow them to earn Ethereum PoS and restaking rewards,” Binance stated. “Puffer goals to democratize Ethereum staking by lowering operational dangers and prices related to validating, making it viable for at-home validators.”
Liquid restaking propels EigenLayer progress
Puffer goals to change into the primary challenge to carry ETH restaking yields onto a community outdoors of the Ethereum ecosystem.
ETH restaking yields are derived from EigenLayer, which permits customers to generate earnings by validating third-party AVSs which are secured by EigenLayer whereas concurrently incomes Ethereum staking rewards. Customers can both natively restaking ETH with out restrict or deposit liquid staking tokens (LSTs) to EigenLayer’s capped swimming pools.
Liquid restaking tokens enable tokenholders to earn restaking yields with out spinning up an Ethereum node and with out locking up funds — that means customers can side-step EigenLayer’s seven-day withdrawal delay by promoting their tokens when exiting a place — lowering the technical obstacles and frictions related to accessing restaking yields.
The emergence of liquid restaking tokens coupled with EigenLayer just lately rising its LST pool limits have propelled EigenLayer to a greater than $2B whole worth locked (TVL) after sitting at $252M in mid-December, in line with DeFi Llama. Natively restaked Ether presently accounts for $986.3M or 48% of the whole, with liquid restaking tokens representing round $900M mixed.
