Binance Labs, Binance’s incubation arm, revealed it had made a significant investment in Solayer. Although Binance Labs did not specify the amount invested in the Solana staking protocol, DefilLama data revealed that Solayer is currently the 13th largest Solana staking protocol.
Binance Labs, Binance’s investment arm, announced it had invested in Solayer, a Solana staking protocol. Binance Lab reportedly aims to support various early-stage stalking projects to boost the crypto ecosystem’s growth. Solayer stated it aimed at developing a full system that would allow users to stake SOL to secure dApps and Solana.
Binance Labs invests an undisclosed amount in Solayer
Binance Labs announced it had invested in a Solana staking protocol, Solayer. By investing in more early-stage staking protocols, Binance Labs reportedly aims to enhance the security of decentralized applications
In its announcement, Binance Labs did not disclose the amount placed on the Solana restaking protocol.
Solayer mentioned that it aims to improve network bandwidth and secure on-chain dApps while boosting Solana’s Layer 1 security. According to Binance Labs’ the strategic investment indicates its commitment to strengthening the crypto ecosystem’s security and bandwidth to address network congestion.
5/ By converting $SOL into $sSOL, users contribute to network security and efficiency while receiving higher yields through a combination of native staking, MEV-boosts, and AVS rewards.
— Solayer (@solayer_labs) August 7, 2024
According to DeFilLama, Solayer is currently the 13th largest protocol on the Solana Blockchain, 60 days since its launch. DeFiLlama data also revealed the blockchain increased its Total Value Locked (TVL) to $150 million from $60 million. The DeFi TVL aggregator also revealed that over 70,000 addresses have locked their tokens.
Solayer plans to develop a full system to secure dApps
Binance’s incubation arm has reportedly made similar investments in other staking protocols, such as Bitcoin staking protocol Babylon and Ethereum liquid staking protocol Puffer Finance. Solayer mentioned it plans to use the funds from Binance Labs to onboard new protocols to the ecosystem.
Solayer added it would use the capital to scale its team and roll out a full system to secure Solana and dApps. The Platform also stated it would consider general asset restaking to secure external actively validated services (AVS) systems away from the Solana blockchain.
“We’ve invested in @solayer_labs. Solayer is a leading restaking network on Solana.”
Binance co-founder and Binance Labs head Yi He praised the development, highlighting Solayer’s dominance in the Solana ecosystem. She added that the collaboration focused on crypto ecosystem growth and emphasized the firm’s commitment to supporting budding projects. The co-founder did not reveal any more terms for the partnership between Solayer and Binance Labs.
Solayer Labs Co-founder Jason praised Binance incubation arm’s decision, saying that the firm’s support is crucial in achieving its goals. He added that the investment would enable Solayer to contribute greater value to dApp security on the Solana network.
CoinMarketCap data revealed that Solana’s price rose by 2% after the announcement, suggesting market optimism despite the crypto market crashes experienced in the last few days. Solana is trading at $147.07 at the time of writing.
