Binance Labs has announced an exciting investment in Kernel. This is a new restaking infrastructure aimed at boosting security and utility on the BNB Chain.
Kernel plans to use restaking to turn BNB’s security into something called programmable trust. This will support a wide range of crypto services, applications, and middleware.
The initial rollout will focus on integrating BNB Liquid Staking Tokens (LSTs) and restaked BNB. This economic security will drive innovation in DeFi on the BNB Chain.
But that’s not all. Kernel also aims to expand by bringing Bitcoin and its derivatives into its restaking framework. Over 20 decentralized applications (dApps) will take advantage of Kernel’s economic security. This includes projects like the AI co-processor Mira and the ZK proof aggregation protocol Electron.
In addition, collaborations with projects such as ListaDAO, Solv, and YieldNest will enhance the utility of restaked assets. Kernel envisions scaling its infrastructure to other layer-1 blockchains in the future.
Kernel’s approach combines native and liquid staking tokens from BNB, BTC, and other yield-bearing assets. This strategy is likely to optimize the utility of these assets and improve capital efficiency.
According to Alex Odagiu, the Investment Director at Binance Labs, “Kernel exemplifies the type of innovative project that aligns with our mission to bring more users onto Web3 by supporting meaningful technology and advancing the ecosystem.”
This investment follows Binance Labs’ recent backing of Lombard, which focuses on liquid staking for Bitcoin. Lombard’s LBTC token currently holds 40% of the Bitcoin liquid staking token market and aims to expand its secure multi-chain staking protocol.
Furthermore, Binance Labs has also ventured into the decentralized science (DeSci) sector. They recently invested in BIO Protocol, marking their first entry into this field.
Overall, Binance Labs is clearly pursuing a broader strategy. They aim to diversify their $10 billion portfolio into innovative and impactful sectors.