JayB Kim, the CEO of MilkyWay, revealed that the Celestia liquid staking protocol, MilkyWay, has successfully raised $5 million in a funding round co-led by Binance Labs and Polychain Capital. Kim also mentioned the participation of additional investors like Hack VC, Crypto.com Capital, and LongHash Ventures in this funding round. Binance Labs will support MilkyWay in becoming a prominent liquid staking protocol in the modular Blockchain ecosystem.

The funding round will enable MilkyWay to make significant advancements in the liquid staking space. The program started last December and concluded recently using a Simple Agreement for Future Equity (SAFE) and Token Development strategy, aligning with future tokens (SAFT) for participating investors. Binance Labs' commitment to making investments, particularly in staking areas, reinforces its dedication to supporting MilkyWay and other promising ventures like Babylon, Renzo, Puffer Finance, and StakeStone. MilkyWay, which was introduced last December, is the first Celestia liquid staking protocol and currently faces competition mainly from Stride.

MilkyWay's architectural approach differs from Stride's, marking a distinct strategic direction in the liquid staking landscape. While MilkyWay operates as a smart contract on Osmosis, Stride operates on its own Layer-1 Blockchain. Kim emphasizes that MilkyWay's simpler design and operational structure incur minimal operational and technical overhead. Currently specializing in Celestia (TIA) token liquid staking, MilkyWay plans to concentrate on widening its token support as it develops. On the other hand, Stride supports liquid staking for multiple tokens, including Cosmos Hub (ATOM), dYdX (DYDX), Injective (INJ), and Juno (JUNO).

Stride demonstrates a broader focus with a total locked value of around $135 million, surpassing MilkyWay in the current funding round. The capital raised will support protocol development and the attraction of more liquid staking providers to their ecosystem. Kim is optimistic that MilkyWay, with plans for growth and innovation, aims to establish itself as a key player in the competitive liquid staking sector.