Bitcoin Restaking Protocol Receives Investment from Binance Labs to Expand BTC Ecosystem Beyond Storage of Value

Binance Labs, the venture capital and incubation arm of Binance has invested in BounceBit, a Bitcoin restaking and CeDeFi protocol to expand the capabilities of Bitcoin beyond traditional storage of value.

BounceBit transforms BTC from a passive asset into “a dynamic force within the ecosystem by active participation in network validation and a variety of yield generating activities.”

At the core of BounceBit’s innovative framework lies “the conviction that Bitcoin empowerment should be predominantly asset-driven, without altering the Bitcoin blockchain.”

Through strategies such as funding rate arbitrage and “the issuance of on-chain certificates for re-staking and mining, BounceBit seamlessly merges the best features of centralized finance (CeFi) and decentralized finance (DeFi) to unlock new possibilities for Bitcoin, facilitating enhanced yield generation and applications.”

Yi He, Co-Founder of Binance and Head of Binance Labs said:

“BounceBit unlocks new avenues for Bitcoin’s utilization with the fusion of CeFi and DeFi. At Binance Labs, we are always seeking innovators shaping the industry, and we look forward to watching their growth as they achieve their mission to empower Bitcoin through secure and transparent CeDeFi solutions.”

BounceBit is led by a team with experiences “across decentralized finance, traditional finance, and Layer 1 blockchain technology.”

BounceBit prioritizes security and transparency “by utilizing regulated custody and Multi-Party Computation (MPC). Combined with Ceffu’s Mirror X and off-exchange settlement (OES) solutions to minimize counterparty risks, BounceBit is committed to creating a secure environment for Bitcoin engagement in yield-generating activities.”

One of the innovations of BounceBit “is its unique Proof of Stake (PoS) Layer 1 ecosystem. This ecosystem incentivizes validators to stake both BounceBit tokens and BTC, creating a dual-token system that not only aims to fortify network security but also amplifies the value and utility of BTC by directly involving it in network operations. Through restaking Bitcoin across multiple systems like oracles and bridges, BounceBit aspires to bolster the security and operational efficiency of the network.”

Jack Lu, Founder & CEO of BounceBit said:

“It is our mission to build restaking infrastructure to drive the utilization of Bitcoin and we want to do it in a secure and transparent manner. Our focus on CeDeFi and developing a robust restaking ecosystem is just the beginning. We are grateful to have Binance Labs support us in this endeavor.”

As noted in the update, BounceBit is building “a BTC restaking infrastructure that provides a foundational layer for different restaking products, secured by the regulated custody of Mainnet Digital and Ceffu.”

The BounceBit chain, designed “as a showcase of a restaking product within the BounceBit ecosystem, is a PoS Layer 1 secured by validators staking both BTC and BounceBit’s native token — A dual-token system leveraging native Bitcoin’s security with full EVM compatibility.”

Critical ecosystem infrastructure like bridges and oracles are “secured by restaked BTC. Through an innovative CeFi + DeFi framework, BounceBit empowers BTC holders to earn yield across multiple networks.”

As the venture capital arm and accelerator of Binance, Binance Labs “has now grown to be worth over $10 billion. Its portfolio covers 250 projects from over 25 countries across six continents and has a return on investment rate of over 14X.”

Fifty of Binance Labs’ portfolio companies “are projects that have gone through their incubation programs.”

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