The venture capital branch of Binance, the leading global cryptocurrency exchange, has made public its decision to invest in BounceBit, a Bitcoin-centric staking protocol.
In a recent announcement on April 11, Yi He, the co-founder of Binance and head of Binance Labs, explained how BounceBit aims to bring together the best elements of centralized finance (CeFi) and decentralized finance (DeFi) to enhance the functionality of Bitcoin (BTC).
“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 part of the emerging group of technologies working to extend Decentralized Finance (DeFi) functionalities to Bitcoin, within the innovative framework referred to as Bitcoin Decentralized Finance (BTCFi).
BounceBit aims to expand Bitcoin’s use case from being a store of value to becoming a yield-generating asset with more capital efficiency.
In the PoS blockchain system, validators are encouraged to hold and put up for validation both Bitcoin and tokens from the BounceBit ecosystem, due to its two-token reward scheme.
According to Jack Lu, founder and CEO of Bouncebit, the built-in staking system specifically designed for Bitcoin is intended to add greater functionality to the cryptocurrency.
“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”
In March, Binance Labs gained autonomy as Binance exchange’s venture capital division, managing a portfolio valued at more than $10 billion. This arm has supported over 250 projects hailing from over 25 different countries, yielding returns that surpassed the initial investment by a factor of 14.
Approximately 110,000 people are currently using BounceBit’s services, and the total worth of assets secured on their platform amounts to over $782 million.
BTCFi on the rise ahead of the Bitcoin halving
A few years ago, it was believed that decentralized finance (DeFi) based on Bitcoin was unachievable. However, BTCFi protocols are currently gathering popularity in the lead up to the upcoming Bitcoin halving, scheduled for April 19.
During its initial decentralized exchange offering on April 5, MerlinSwap attracted over 52,000 investors and successfully raised an equivalent of 6,599 Bitcoins or approximately $480 million for BTCFi, the demand for which was evident.
Nash Lee, MerlinSwap’s co-founder, expressed to CryptoMoon his belief that the strong market interest in BTCFi, as signified by the success of the IDO record, could potentially rival Ethereum‘s innovations in the Decentralized Finance (DeFi) sector in the future.
“It symbolizes the community’s eagerness to engage with and drive forward the DeFi revolution on Bitcoin’s platform. It underscores a significant shift toward recognizing the untapped potential of Bitcoin in the DeFi space, highlighting a broad-based demand for innovative, decentralized financial solutions built on the world’s first cryptocurrency.”
Read More
- CTK PREDICTION. CTK cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- EUR JPY PREDICTION
- DGB PREDICTION. DGB cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- TRU PREDICTION. TRU cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- Skai Jackson’s Alleged BF Seemingly Disses Late Costar Cameron Boyce
- CRV PREDICTION. CRV cryptocurrency
2024-04-11 15:26