Binance Labs Invests $10 Million To Drive Helio Liquid Staking Protocol

Key Points:

• Binance Labs says it has invested $10 million to promote the Helio liquidity staking protocol.
• Binance Labs also said it is focusing on investing in this fast-growing LSDFi sector.
• Not only stopping at BNB Chain, but Helio also wants to expand to Ethereum and other prominent layers 2.

According to Decrypt, Binance Labs has invested $10 million in the Helio Protocol to help scale the protocol’s ongoing transformation into a liquid staking platform.

This additional money is anticipated to aid Helio’s platform expansion to other chains, even though it is presently based on the proof-of-stake network BNB Chain. A Binance prominent Labs spokesperson said, “Helio’s objective is to launch on Ethereum, and subsequently with L2 networks like Arbitrum and Zksync.”

Liquidity staking has become all the rage over the past few years as more blockchains transition to proof-of-stake (PoS). Since liquidity staking tokens are platform-specific, it is essential to choose the right platform so that your staking cryptocurrency is not at risk and you are maximizing your rewards.

Faced with the rapid and intense development of liquidity staking protocols, a spokesperson for Binance Labs told Decrypt via email that the venture firm is optimistic about the world of liquid staking, sometimes when called liquidity bet financial derivatives.

LSDfi protocols have opened up new opportunities for profit-seeking LST holders and have seen a rapid rise in TVL over the past few months.

Helio Protocol is an open-source liquidity protocol built on the BNB chain, where users can lend and profit on HAY – a decentralized stablecoin (destablecoin) backed by an amount of assets more significant than the minted value (over-collateralized).

Previously, Helio only offered stable minting, allowing users to mint HAY, a decentralized USD-pegged stablecoin backed by oversold BNB. In July, Helio Protocol merged with staking provider Synclub. The same month it announced that it was diversifying the collateral used to support HAY.

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