Multiple Crypto Startups Secure Over $60 Million in Funding: Liquid Staking and Smart Contract Security Dominate Investments

Multiple Crypto Startups Secure Over $60 Million in Funding: Liquid Staking and Smart Contract Security Dominate Investments

Crypto News – In the span of a week, eleven cryptocurrency startups have collectively raised an impressive sum of nearly $60 million. This recent influx of capital primarily gravitates toward projects related to liquid staking and smart contract security within the crypto ecosystem.

Topping the list for fundraising success is Helio Protocol, a provider of liquid staking derivatives solutions, which managed to secure a substantial $10 million investment from Binance Labs. With a total value locked amounting to $300 million, as reported by Binance Labs, Helio Protocol predominantly engages in over-collateralized lending using its decentralized stablecoin HAY. Moreover, it offers services such as “multi-chain staking-as-a-service” and “liquid staking derivatives,” executed through Synclub, a BNB validator that merged with Helio in July.

This merger is set to expand the range of liquid staking tokens accepted as collateral on the platform, with Synclub already accommodating native staking for various cryptocurrencies including polkadot (DOT), cosmos (ATOM), tron (TRX), and Binance Coin (BNB). Yi He, Binance co-founder, affirmed the commitment of Binance Labs to support DeFi projects, emphasizing the significance of the LSDfi sector in propelling the growth of the decentralized finance ecosystem.

Another player in the liquid staking arena is Puffer Finance, which secured a funding of $5.5 million in a seed round led by Lightspeed Faction and Lemniscap, with significant participation from Brevan Howard’s crypto arm. Puffer Finance’s decision to raise funds was influenced by the Ethereum Shapella upgrade, which transitioned the network to a proof-of-stake model.

To counter concerns about centralized liquid staking providers surpassing decentralized ones, Puffer aims to enhance the economic viability of home stakers through its Secure-Signer tool, guarding against slashable offenses. Additionally, the startup offers a pathway for home stakers to join the Ethereum network through a Puffer pool with as little as 2 ether (ETH), a contrast to the 32 ETH typically required for solo stakers.

Smart contract security remains a focal point, as evident from Alchemy’s developer report for Q2 2023, which highlighted builders’ keen interest in developing solutions in this domain. Subsequently, three startups secured significant funding to address smart contract security concerns. Cube3.ai, having raised $8.2 million in seed funding, introduced blockchain security products called Detect, Protect, and Manage, designed to monitor and potentially block malicious transactions on the blockchain.

Spearbit, with a funding of $7 million, endeavors to establish Cantina, an open marketplace for Web3 security auditors. Finally, SphereX successfully raised $8.2 million in seed funding at a valuation of $24 million, attracting investments from Aleph, Pillar VC, Fabric Ventures, Mensch Capital Partners, and other angel investors.

This week’s fundraising activities underscore the increasing focus on liquid staking and smart contract security within the evolving cryptocurrency landscape. As crypto startups secure substantial investments, the industry continues to witness advancements and innovations in these critical areas.