Binance Labs Invests in Bitcoin-native Restaking Venture BounceBit ahead of Bitcoin Halving
Summary:
BounceBit, a Bitcoin-native restaking protocol, has received investment from Binance Labs. Combining features from both centralized and decentralized finance, BounceBit aims to enhance Bitcoin's utility and transform it from a store of value to a yield-generating asset. The platform's restaking infrastructure promotes the use of Bitcoin in a secure and transparent manner. Highlighting the shifting trend in the crypto industry, Bitcoin DeFi protocols like BounceBit are gaining traction ahead of the upcoming Bitcoin halving.
BounceBit, a Bitcoin-based restaking protocol, has secured funding from Binance Labs, the independent venture capital division of the world's leading cryptocurrency exchange. Binance Labs has thrown its weight behind the unique platform that merges features of both centralized finance (CeFi) and decentralized finance (DeFi), aiming to increase the utility of Bitcoin (BTC), as shared by Yi He, the co-founder of Binance and head of Binance Labs, on April 11: "With its blend of CeFi and DeFi, BounceBit paves fresh paths for Bitcoin's use. We at Binance Labs continually support industry disruptors and eagerly anticipate witnessing BounceBit's evolution as they strive to fortify Bitcoin through secure and transparent CeDeFi solutions.”
BounceBit represents the latest batch of protocols striving to extend DeFi capabilities to Bitcoin, creating a new technological landscape known as Bitcoin DeFi (BTCFi). The protocol's objective is to transform Bitcoin from merely a value store to a yield-inducing asset with enhanced capital efficiency within a proof-of-stake (PoS) layer-1 ecosystem that encourages validators to utilize both Bitcoin and BounceBit ecosystem tokens.
The CEO of BounceBit, Jack Lu, noted the restaking infrastructure's key objective is to maximize Bitcoin's utility: "Our commitment is to develop a restaking infrastructure that accelerates Bitcoin's usage, and we aim to do so transparently and securely. Our exploration into CeDeFi and the establishment of a robust restaking ecosystem are just the start. We appreciate the support from Binance Labs in pursuing this goal.”
Binance Labs separated from Binance exchange in March, becoming an autonomous venture capital branch with a portfolio that exceeded $10 billion. It boasted returns on over 250 initiatives from more than 25 nations, registering a return on investment rate above 14 times.
BounceBit currently provides its services to over 110,000 users, with over $782 million of total value locked (TVL), according to its website.
Bitcoin-native DeFi, once seen as a pipe dream, has been gaining momentum ahead of the eagerly expected Bitcoin halving slated for April 19. One indication of this growing demand is decentralized exchange (DEX) MerlinSwap, which raised Bitcoin worth $480 million from over 52,000 investors during its initial DEX offering (IDO) on April 5.
MerlinSwap co-founder, Nash Lee, believes this development fostered community involvement in driving the DeFi revolution on Bitcoin's platform. He remarked: "It highlights an important shift towards acknowledging Bitcoin's latent potential in the DeFi space, underlining the widescale need for decentralized financial solutions built on the first cryptocurrency in the world.”
Published At
4/11/2024 3:02:29 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.