Binance Labs invests in L2 startup Zircuit, AI sequencer mechanism SLS attracts TVL of 2.7 billion RMB

Binance's risk investment and incubation department, Binance Labs, has invested in Zircuit, a developer in the Ethereum layer 2 network field. Zircuit, currently in the mainnet fundraising stage, has garnered attention for its AI sequencer mechanism SLS, attracting up to $2.7 billion in Total Value Locked (TVL) assets.

Zircuit's Major Investment Announcement: Another All-Star VC Lineup

Zircuit announced a new round of funding on July 23, including well-known venture capital firms such as Binance Labs, Mirana Ventures, Amber Group, Robot Ventures, Nomad Capital, Borderless Capital, and Selini Capital. Previously disclosed investors also include Pantera Capital and Dragonfly, but the specific amount of funding has not been disclosed.

What is Zircuit?

Zircuit is an EVM-compatible ZK Rollup L2 that aims to introduce a more secure mechanism, Sequencer Level Security (SLS), into the architecture of sequencers on L2, ensuring transaction security with artificial intelligence. Martin Derka, co-founder of Zircuit and former head of Quantstamp, explained that this AI-driven security mechanism can review each transaction, identify and isolate potential hacker attacks, thereby preventing them from affecting the network.

Solving the Issue of Malicious Transactions

Zircuit claims that by monitoring malicious transactions in the mempool, they can prevent them from being included in blocks, protecting users at the sequencer level. Compared to typical security work focused on applications and smart contracts, Zircuit's approach directly addresses the underlying sequencer level, known as Sequencer Level Security (SLS).

Mainnet Staking Event: Attracting $2.7 Billion TVL

Zircuit's testnet was launched during the DevConnect event in Turkey in 2023. The mainnet is planned to go live in the coming months, and currently, users can acquire Zircuit points through two activities, thereby gaining up to $2.7 billion in assets.

• Stake ETH LST/LRT liquidity staking certificates/liquidity restaking certificates
• Build-to-Earn, participating in development projects

Zircuit's staking program is designed to reward participating users and the community, allowing Zircuit to have native liquidity on the first day of the mainnet launch. While users can earn Zircuit points through staking, those who choose to move their assets to the Zircuit mainnet upon launch will receive the highest rewards.

How to Stake Zircuit for Points?

Participation involves staking derivatives or ETH. It is worth noting that staking derivatives with ETH will earn higher Zircuit points, while staking native ETH will accumulate points at half the efficiency of LST/LRT. Supported protocols currently include EigenLayer, Lido, Renzo, EtherFi, Swell, KelpDAO, Liquid Collective, Mantle LSP, Ethena, EigenPie, STAKESTONE, Puffer, PumpBTC, and more.

Will L2 Make Headlines Again?

Major investments from Binance Labs and other key venture capitalists have sparked increased interest in Zircuit. Although trust in the coins funded by venture capital has decreased, the L2 trend is not as strong as before. However, Zircuit's security model addressing L2 pain points may help it carve out a niche in the crowded world of L2 solutions.