Binance Labs Announces Investment in BounceBit, a Bitcoin Rehypothecation and CeDeFi Protocol, Aimed at Transforming Bitcoin from a Passive Asset to a Dynamic Participant in the Cryptocurrency Ecosystem.
BounceBit aims to leverage the potential of Bitcoin by integrating it into various income-generating activities without altering its underlying blockchain. The core idea behind this protocol is to empower Bitcoin with asset-driven strategies, including funding rate arbitrage and issuing certificates on the issuance chain for rehypothecation 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 who shape the industry and look forward to seeing them realize secure and transparent CeDeFi solutions.”
The leadership team of BounceBit boasts rich experience from decentralized finance, traditional finance, and L1 blockchain technology. The protocol emphasizes security and transparency, utilizing regulated custody solutions and multi-party computation (MPC) to mitigate risks. It collaborates with Ceffu’s Mirror X and Off-Exchange Settlement (OES) solutions.
A unique feature of BounceBit is its Proof of Stake (PoS) L1 ecosystem that encourages validators to stake BounceBit tokens and BTC. This dual-token system aims to enhance network security and increase utility and value by integrating Bitcoin into network operations. BounceBit will rehypothecate Bitcoin across various systems, including oracles and cross-chain bridges, to improve network security and efficiency.
The Founder and CEO of BounceBit said, “Our mission is to build rehypothecation infrastructure and drive the utilization of Bitcoin in a secure and transparent manner. We focus on CeDeFi and the development of a robust rehypothecation ecosystem is just the beginning. We are grateful for the support of Binance Labs in this endeavor.”
Binance Labs
BounceBit