Binance Labs, the $10 billion venture capital and incubation arm of Binance, has made a strategic investment in Solayer, a Solana restaking protocol. This investment highlights Binance Labs’ continued commitment to expanding its portfolio in the staking and restaking sectors across various blockchain ecosystems.
Binance Labs has invested an undisclosed amount in Solayer, a protocol designed for restaking on the Solana blockchain. The move underscores Binance Labs’ strategic focus on the staking and restaking verticals within the cryptocurrency space.
This investment is part of a broader trend, with Binance Labs having previously backed several staking projects, including Ethereum’s Puffer Finance and Renzo, Bitcoin’s Babylon, and Berachain’s Infrared.
Solayer is designed to enhance the staking experience on the Solana network. Similar to Ethereum’s pioneering restaking protocol, EigenLayer, Solayer enables users to earn additional rewards by locking their staked assets into various protocols known as actively validated services (AVSs).
The protocol operates by first converting native Solana (SOL) tokens into an intermediary form called sSOL-raw, which is issued by the stake pool manager. These sSOL-raw tokens are then further converted into sSOL after interaction with Solayer’s restaking pool manager, according to the protocol’s website.
Since its launch, Solayer has quickly risen to become the 13th largest protocol on Solana, with over $150 million in total value locked (TVL) as reported by DeFiLlama. The protocol currently boasts over 79,000 depositors, reflecting its growing popularity and adoption.
The investment from Binance Labs is expected to fuel Solayer’s growth, enabling the protocol to expand its team and integrate additional protocols into its ecosystem. This move aligns with Binance Labs’ strategy to support innovative projects within the staking and restaking domains across multiple blockchain networks.
