Bitcoin staking chain BounceBit secures $6M to deliver DeFi to BTC

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BounceBit, an infrastructure supplier enabling BTC staking, introduced right this moment that it has raised $6 million in a funding spherical led by Blockchain Capital and Breyer Capital. The corporate goals to construct infrastructure that permits Bitcoin holders to earn yields by way of a restaking mechanism.

The spherical included backing from a number of notable blockchain enterprise funds together with dao5, CMS Holdings, Bankless Ventures, NGC Ventures, Primitive Ventures, and Arcane Group.

“There’s a big alternative to deliver DeFi and different improvements to the Bitcoin neighborhood by way of BTC restaking — we’re excited to again BounceBit as they lead the cost,” stated Aleks Larsen, Basic Accomplice at Blockchain Capital.

The idea of ‘restaking’ entails staked belongings being staked once more on different platforms after preliminary staking to enhance utility and earn extra rewards. BounceBit will implement restaking in a manner that enhances cryptoeconomic safety and unlocks new alternatives for Bitcoin holders.

On the core of BounceBit’s providing is a BTC restaking chain that’s secured by validators staking each BTC and BounceBit’s native token in a dual-token system. This permits BounceBit to leverage Bitcoin’s safety and liquidity whereas nonetheless enabling options generally present in proof-of-stake chains.

The restaked BTC helps safe bridges, oracles, and different infrastructure constructed on prime of BounceBit. On this manner, the corporate is bringing decentralized finance (DeFi) capabilities to Bitcoin with out requiring modifications on the base protocol layer.

BounceBit additionally makes use of a centralized finance (CeFi) custody basis to safe customers’ belongings whereas they work together with its DeFi choices. Belongings are held by regulated entities like Mainnet Digital and Ceffu whereas nonetheless sustaining on-chain traceability.

The corporate launched in early entry this month and has already accrued almost $460 million price of complete worth locked, in line with DefiLlama information. Mainnet is predicted to launch in April across the time of Bitcoin’s subsequent halving.

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