cryptobriefing.com
Three weeks after its initial early access release, BounceBit has already accumulated $458 million in total value locked.
BounceBit, an infrastructure provider enabling BTC staking, announced today that it has raised $6 million in a funding round led by Blockchain Capital and Breyer Capital. The company aims to build infrastructure that allows Bitcoin holders to earn yields through a restaking mechanism.
The round included backing 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 restaking — we’re excited to back BounceBit as they lead the charge,” said Aleks Larsen, General Partner at Blockchain Capital.
The concept of ‘restaking’ involves staked assets being staked again on other platforms after initial staking to improve utility and earn additional rewards. BounceBit will implement restaking in a way that enhances cryptoeconomic security and unlocks new opportunities for Bitcoin holders.
At the core of BounceBit’s offering is a BTC restaking chain that is secured by validators staking both BTC and BounceBit’s native token in a dual-token system. This allows BounceBit to leverage Bitcoin’s security and liquidity while still enabling features commonly found in proof-of-stake chains.
The restaked BTC helps secure bridges, oracles, and other infrastructure built on top of BounceBit. In this way, the company is bringing decentralized finance (DeFi) capabilities to Bitcoin without requiring changes at the base protocol layer.
BounceBit also utilizes a centralized finance (CeFi) custody foundation to secure users’ assets while they interact with its DeFi offerings. Assets are held by regulated entities like Mainnet Digital and Ceffu while still maintaining on-chain traceability.
The company launched in early access this month and has already accumulated nearly $460 million worth of total value locked, according to DefiLlama data. Mainnet is expected to launch in April around the time of Bitcoin’s next halving.