Binance Labs Announces Investment in Bitcoin Repledging Project BounceBit
Binance Labs announced an investment in BounceBit, a Bitcoin re-collateralization and CeDeFi protocol aimed at transforming Bitcoin from a passive asset to a dynamic participant in the cryptocurrency ecosystem.
BounceBit seeks to leverage the potential of Bitcoin by integrating it into various income-generating activities without altering its underlying blockchain. The core concept of this protocol is to empower Bitcoin with asset-driven strategies, including funding rate arbitrage and issuing certificates on the chain for re-collateralization and mining.
He Yi, Co-founder of Binance and Head of Binance Labs, stated, “BounceBit opens up new avenues for utilizing Bitcoin through the fusion of CeFi and DeFi. At Binance Labs, we are always looking for innovators shaping the industry and look forward to seeing them realize secure and transparent CeDeFi solutions.”
BounceBit’s leadership team has rich experience in decentralized finance, traditional finance, and L1 blockchain technology. The protocol emphasizes security and transparency, utilizing regulated custody solutions and multi-party computation (MPC) to reduce risks, in collaboration with Ceffu’s Mirror X and Over-the-Counter (OTC) settlement solutions.
A new feature of BounceBit is its unique Proof-of-Stake (PoS) L1 ecosystem, which incentivizes validators to stake BounceBit tokens and BTC. This dual token system aims to enhance network security and also increase the utility and value of Bitcoin by integrating it into network operations. BounceBit will re-collateralize Bitcoin in various systems, including oracles and cross-chain bridges, to improve network operational security and efficiency.
The Founder and CEO of BounceBit stated, “Our mission is to build a re-collateralization infrastructure to drive the utilization of Bitcoin, and we want to do it in a secure and transparent manner. We are focused on CeDeFi and developing a robust re-collateralization ecosystem is just the beginning. We are grateful for the support of Binance Labs in this endeavor.”
Binance Labs
BounceBit
