The whole value locked within BounceBit has already grown to $458 million, only three weeks after its original early access release.
Blockchain Capital and Breyer Capital led a $6 million investment round that BounceBit, an infrastructure provider that allows BTC staking, announced today. The company’s long-term goal is to set up a system where Bitcoin holders may restake their holdings for dividends.
In addition to Arcane Group and Bankless Ventures, other prominent blockchain venture firms that participated in the round included Dao5, CMS Holdings, NGC Ventures, and Primitive Ventures.
Blockchain Capital’s General Partner Aleks Larsen said, “We’re thrilled to support BounceBit as they lead the charge.” He went on to say that the Bitcoin community has a great chance to benefit from DeFi and other advances via BTC restaking.
The term “restaking” refers to the practice of staking assets on several platforms after the first staking in order to increase their usefulness and receive more rewards. To improve cryptoeconomic security and open up new prospects for Bitcoin holders, BounceBit will execute restaking using a certain method.
Central to BounceBit’s offering is a BTC restaking chain, which is reinforced through a dual-token system where validators stake both BTC and BounceBit’s native token. The combination of Bitcoin’s liquidity and security with qualities typical of proof-of-stake networks enables BounceBit to thrive.
The new value of BTC helps protect bridges, oracles, and other IT systems built on top of BounceBit. Without modifying the Bitcoin protocol at its foundational level, the business is enhancing Bitcoin with decentralized finance (DeFi) features.
In order to keep customer assets safe while they use BounceBit’s DeFi services, the company employs a centralized finance (CeFi) custody foundation. Mainnet Digital and Ceffu are regulated corporations that hold assets while ensuring on-chain traceability.
Data from DefiLlama shows that since the company’s early access debut this month, it has amassed approximately $460 million in total value locked. There will likely be a mainnet launch in April, coinciding with Bitcoin’s second halving.
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