Binance Labs Expands its Portfolio with Strategic Investments in DeFi and Web3 Infrastructure

Binance Labs invests in Pendle Finance and Delphinus Lab, showcasing commitment to DeFi and Web3 innovation in the crypto space.

Aug 24, 2023 - 10:36
Oct 19, 2023 - 12:57
Binance Labs Expands its Portfolio with Strategic Investments in DeFi and Web3 Infrastructure
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Binance Labs, the venture capital arm of Binance, has recently made significant investments in the decentralized finance (DeFi) and Web3 sectors, signaling its commitment to fostering innovation in the crypto space.

Pendle Finance: A Pioneer in Liquid Staking

Binance Labs has invested in Pendle Finance, a DeFi application that specializes in yield tokenization. This protocol offers a unique fixed yield system, akin to bonds, where a yield-bearing token is split into a principal token and a yield component. Users can purchase the principal token at a discount and redeem it at maturity to earn the generated yield. Currently, Pendle Finance provides an annual fixed yield of 2.93% on USDT and 5.37% on stETH.

Liquid staking derivatives (LSD) like stETH and Frax's FraxETH make up nearly half of Pendle Finance's deposits. The LSDfi sector, which refers to applications utilizing LSD tokens in DeFi for additional yields, has seen exponential growth. Binance Labs spokesperson emphasized the importance of LSD assets as core components of the decentralized finance landscape. This investment in Pendle follows Binance Labs' previous $10 million investment in the Helio Protocol.

Delphinus Lab: Advancing Web3 Application Development

Binance Labs has also announced its investment in Delphinus Lab, a leading infrastructure provider in the zkWASM domain. Delphinus Lab has developed the first open-source zkWASM virtual machine, merging zero-knowledge (ZK) cryptography with WebAssembly (WASM) environments. This technology enhances the security and privacy of applications, promoting a more decentralized digital ecosystem.

Sinka Gao, the CEO of Delphinus Lab, highlighted their zkWASM Hub, which provides a multi-chain execution layer for developers to deploy WASM-backed apps in a dynamic rollup environment. Binance Labs' investment will further the development of this platform, which offers automated proving and batching services for application workloads.

Yi He, Co-Founder of Binance and Head of Binance Labs, expressed enthusiasm about the partnership, noting that Delphinus Lab's zkWASM implementation would attract Web2 developers to the Web3 world.