Binance Labs Supports BounceBit To Drive Innovations In Bitcoin Restaking And CeDeFi
In Brief
Venture capital arm of Binance, Binance Labs invested in Bitcoin restaking platform and the CeDeFi protocol BounceBit.
Venture capital firm linked to the cryptocurrency exchange Binance, Binance Labs, made an investment in BounceBit, a Bitcoin (BTC) restaking platform and the CeDeFi protocol.
BounceBit operates as a Proof of Stake (PoS) Layer 1 blockchain, utilizing a dual-token structure that combines the inherent security of Bitcoin with full Ethereum Virtual Machine (EVM) compatibility to enable validators to stake BTC and BounceBit’s native token. By restaking Bitcoin throughout various systems, such as bridges and oracles, BounceBit aims to enhance the network’s operational efficiency and security.
BounceBit is developing a Bitcoin restaking infrastructure to lay the groundwork for various restaking products. This infrastructure is safeguarded by regulated custody services provided by Mainnet Digital and Ceffu. Integrating elements of centralized finance (CeFi) and decentralized finance (DeFi) enables Bitcoin holders to generate yield across various networks.
Notably, the technology is distinctive. Instead of focusing on the protocol level, its approach centers on the asset level in interaction with Bitcoin. Moreover, BounceBit plans to develop a diverse infrastructure to explore the potential restaking applications of varying types of Bitcoin.
Founded in late 2023, BounceBit has been operational in early access mode. The protocol already garnered support from Blockchain Capital and Breyer Capital, raising $6 million in a seed funding round earlier this year. Currently, BounceBit’s total value locked surpasses $465 million, as reported by DefiLlama. BounceBit is accessible in the testnet, and the mainnet launch is expected later this month.
Binance Labs Continues to Support Staking and Restaking Startups, Invests in Babylon Protocol
The recent Binance Labs move indicates the company’s ongoing interest in startups operating within the staking and restaking sectors. Throughout 2024, Binance Labs has provided support to Renzo and Puffer Finance, both of which have rapidly emerged as the largest Ethereum liquid restaking protocols, ranking second and fourth, respectively, based on data from DeFiLlama.
Recently, the venture capital firm invested in Babylon, another Bitcoin staking protocol whose technology is comparable to that of BounceBit.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
