Binance Labs, the $10 billion venture capital and incubation arm of crypto exchange Binance, has invested in Puffer Finance, an Ethereum liquid restaking protocol built on EigenLayer.

Binance Labs did not disclose the investment amount, but it said that Puffer will utilize the funds to develop its Layer 2 network, which will operate as an EigenLayer Actively Validated Service. Additionally, the funds will be used to introduce Puffer's native liquid restaking token, pufETH, to BNB Chain users, enabling them to earn staking and restaking rewards, Binance Labs said Tuesday.

Binance Labs' investment in Puffer comes as the Ethereum restaking vertical has been gaining momentum since the launch of EigenLayer last June. Last week, ClayStack entered the Ethereum restaking space via EigenLayer, …