DeFi
Web3 teams compete to restore the $1.2 billion Bitcoin ecosystem
Developers are racing to leverage BTC to replicate Ethereum’s booming restaurant ecosystem.
DeFi developers are competing to replicate the explosive growth generated by Ethereum’s restructuring sector within the Bitcoin ecosystem.
On May 20, BounceBit, a “CeDeFi” layer 1 network backed by Binance, the popular centralized exchange, published its roadmap for 2024. In the document, BounceBit said it plans to develop a “shared security client module” allowing third-party projects to use liquidity deposited on the “BounceBit BTC replenishment chain.”
BounceBit celebrated the launch of its mainnet on May 13, claiming to have accumulated a total value locked (TVL) of over 1 billion dollars after launching an early access incentive phase on January 30.
The BounceBit chain is secured by users staking both its native BB token and Bitcoin (BTC). BounceBit’s new roadmap seeks to expand on this with the introduction of restaging by allowing third-party protocols to leverage its staking mechanism for security purposes.
BounceBit’s roadmap also includes improving the execution of BounceBit’s Ethereum Virtual Machine (EVM), increasing transaction throughput, and upgrading communication between its EVM and the Cosmos software development kit.
Resumption of the boom
Resttaking was launched on Ethereum by Clean diaper. EigenLayer allows Ethereum stakeholders to earn additional yield by simultaneously pledging their participation to secure actively validated third-party services (AVS) while also securing the Ethereum network. However, restakers run additional risks of reduction, which means that their participation will be reduced in the event of bad behavior of delegated AVS.
EigenLayer became the second largest DeFi protocol with a TVL of over $15.3. The growth of the protocol has been boosted recently by the explosive rise Liquid Restaking Token (LRT) protocols, which reduce technical barriers to participating in retaking and enable additional yield generation by allowing users to remain liquid.
Projects use Babylon as middleware for Bitcoin replenishment
BounceBit is not the first project aiming to bring restoration to Bitcoin, with several projects leveraging Babylon, a Cosmos-based Bitcoin staking network, to develop BTC-based restoration products.
Babylon is a Cosmos-based network allowing Bitcoin holders to “stake” their BTC to secure Proof-of-Stake (PoS) networks in exchange for a yield.
On May 16, Mind Network, a Layer 1 network focused on restoration, announcement a strategic alliance with Babylon. Under the agreement, users will be able to secure Mind-based subnets by staking Babylon-based LRTs.
On May 2, Bedrock, an LRT protocol, spear uniBTC, a liquid Bitcoin takeover token based on Babylon. UniBTC allows BTC holders to participate in Babylon staking without locking up their assets, meaning holders can remain liquid while securing PoS chains.
On April 1, the Lorenzo protocol likewise revealed stBTC, a Babylon-based Bitcoin LRT.