Binance Labs, the venture capital and incubation arm of the crypto exchange Binance, has made a strategic investment in Solayer, a Solana restacking protocol. The investment amount remains undisclosed, but it marks Binance Labs’ continued interest in the staking and restaking sectors within the cryptocurrency ecosystem.

Binance Labs’ Strategic Investments

In recent months, Binance Labs has significantly invested in various staking projects across multiple ecosystems, including Ethereum, Bitcoin, and Berachain. Notable investments include Ethereum liquid restacking protocols Puffer Finance and Renzo, Bitcoin staking protocol Babylon, and Berachain liquid staking protocol Infrared. These investments underline Binance Labs’ commitment to supporting innovative solutions in the crypto-staking space.

About Solayer

Solayer is a Solana restacking protocol, designed to enable users to earn additional rewards by locking up their staked assets in different protocols, known as actively validated services (AVSs). This approach mirrors the pioneering Ethereum restacking protocol, EigenLayer.

How Solayer Works

For native Solana (SOL) restacking, Solayer initially converts SOL to an intermediary form called sSOL-raw. The stake pool manager issues this liquid staking token (LST). Subsequently, sSOL-raw is converted to sSOL after interacting with the Solayer restacking pool manager. This process maximizes users’ earnings by allowing them to restack their assets efficiently.

Rapid Growth and Future Plans

Since its launch, Solayer has quickly become the 13th largest protocol on Solana, boasting over $150 million in total value locked (TVL), according to DeFiLlama. The platform currently has over 79,000 depositors. With the fresh capital infusion from Binance Labs, Solayer aims to expand its team and integrate new protocols into its ecosystem, enhancing its offerings and user experience.