Binance Labs has recently invested in the Bitcoin staking protocol Babylon, signaling its continued interest in supporting startups in the staking and restaking sectors. While the exact investment amount remains undisclosed, Babylon has secured $18 million in Series A in December 2023 and $8.8 million in seed funding in 2022.
This move follows Binance Labs' recent investments in Renzo and Puffer Finance, both liquid restacking protocols on Ethereum, solidifying its commitment to these emerging sectors within the cryptocurrency space.
Babylon, functioning as a staking protocol for Bitcoin, allows BTC holders to stake their coins on proof-of-stake blockchains. The protocol enhances the security of PoS chains by leveraging Bitcoin's robustness. Binance Labs' support for Babylon aligns with the imminent launch of the protocol's test network this week, coinciding with its mission to expand Bitcoin's use cases in the Proof-of-Stake economy.
The Babylon PoS chain, constructed using the Cosmos SDK, is set to become the first chain protected by this protocol. Plans include creating a market where BTC holders can migrate to other PoS networks through Babylon. With Binance Labs' financial backing, Babylon aims to grow its development team and launch phase one of the main network by the end of the year.
In addition to Babylon, Binance Labs has invested in Renzo, a Liquid Restaking Token (LRT) and Strategy Manager designed to drive EigenLayer adoption. Renzo facilitates trustless collaboration between stakers, node operators, and actively validated services through Ethereum smart contracts. The protocol aims to establish a standard for risk management in restaking, working with institutional node operators, and focusing on redefining risk management and security in the EigenLayer ecosystem.
Renzo also collaborates with bridging partners to enable cross-chain bridging of ETH directly on EigenLayer, streamlining the process for users across different chains. With a team consisting of DeFi native founders, Renzo is dedicated to providing innovative values and features in liquid restaking products, emphasizing risk management and security within the EigenLayer ecosystem.