BounceBit raises $6 million in seed funding for BTC re-staking

BTC Restock Infrastructure Builder bounce beat We raised $6 million in a seed funding round to further develop our innovative protocol. This funding round, led by prominent venture capital firms Blockchain Capital and Breyer Capital, is a significant milestone for BounceBit as it sets out to revolutionize monetization within the Bitcoin community.

Why it matters: The focus of BounceBit’s efforts is to build a robust BTC re-staking ecosystem based on a dual-token system that combines the security of Bitcoin with the versatility of Ethereum Virtual Machine (EVM) compatibility. This ecosystem is designed to provide a multifaceted approach to monetization for BTC holders across various networks.

context: Blockchain Capital has invested in well-known cryptocurrency startups, including BitGo, Bitwise, Messari, and Worldcoin. Breyer Capital has also invested in some high-profile fintechs, including CIRCLE, chia, and Parallel Finance.

• “We are excited to lead BounceBit’s seed round as they push the boundaries of BTC re-staking and yield generation,” said Ted Breyer, Partner at Breyer Capital.
• “There is a tremendous opportunity to bring DeFi and other innovations to the Bitcoin community through BTC re-staking,” said Aleks Larsen, Blockchain Capital general partner.

This seed round Many well-known investors participated, including dao5, CMS Holdings, Bankless Ventures, and NGC Ventures, as well as influential angel investors such as Nathan from Anchorage Digital and Calvin and Jessy from Eigenlayer.

Big picture: The core of BounceBit’s innovation lies in the BTC Restake mechanism that serves as the foundation for the project.

• Unlike traditional layer 2 solutions, BounceBit’s approach operates at layer 1, interacting with Bitcoin only at the asset level and not the protocol level.
• This distinction provides shared security for BounceBit’s infrastructure and decentralized applications (DApps), with bridges and oracles verified by re-staked BTC.

• Additionally, BounceBit’s transparent CeFi-based utilization ensures safe custody of user assets through regulators such as Mainnet Digital and Ceffu.
• This fusion of CeFi and DeFi elements will allow BTC holders to profit through delta-neutral strategies while also providing an additional layer of protection through insurance funds.

Looking ahead, BounceBit strategically plans to launch its mainnet in April to coincide with the Bitcoin halving event. The upcoming testnet, scheduled to launch in early March, will serve as a precursor to the mainnet launch, giving stakeholders a glimpse into the performance and capabilities of the platform.

conclusion: BounceBit has already proven its potential to revolutionize BTC Restake and monetization, accumulating $445 million in Total Value Locked (TVL) in just three weeks since its Early Access launch. As BounceBit continues to advance its roadmap, it aims to play a significant role in reshaping the landscape of decentralized finance within the Bitcoin ecosystem.

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