Share this article
BounceBit, an infrastructure provider enabling BTC staking, announcement today, it raised $6 million in a funding round led by Blockchain Capital and Breyer Capital. The company aims to build an infrastructure for Bitcoin holders to earn returns through a rollover mechanism.
The round included support from several notable blockchain venture funds, including dao5, CMS Holdings, Bankless Ventures, NGC Ventures, Primitive Ventures, and Arcane Group.
“There is a huge opportunity to bring DeFi and other innovations to the Bitcoin community through BTC restyling – we are excited to support BounceBit as they lead the charge,” said Aleks Larsen, General Partner at Blockchain Capital.
The concept of “restaking” involves staked assets being re-staked on other platforms after the initial staking to improve utility and earn additional rewards. BounceBit will implement recovery in a way that improves cryptoeconomic security and opens up new opportunities for Bitcoin holders.
At the heart of BounceBit's offering is a BTC rollover chain secured by validators staking both BTC and BounceBit's native token in a dual-token system. This allows BounceBit to leverage the security and liquidity of Bitcoin while enabling features commonly found in proof-of-stake chains.
Reinvested BTC helps secure bridges, oracles, and other infrastructure built on BounceBit. In this way, the company brings decentralized finance (DeFi) capabilities to Bitcoin without requiring changes to the base protocol layer.
BounceBit also uses a centralized financial custody base (CeFi) to secure users' assets while they interact with its DeFi offerings. Assets are held by regulated entities like Mainnet Digital and Ceffu while maintaining on-chain traceability.
The company launched in early access this month and has already accumulated nearly $460 million in total value locked, according to DefiLlama. data. Mainnet is expected to launch in April, around the time of Bitcoin's next halving.
Share this article