BounceBit, a Bitcoin restaking platform, has received an undisclosed amount in investment from Binance Labs, the VC arm of cryptocurrency exchange Binance.

BounceBit offers a DeFi platform that enables users to earn yields from staking their idle cryptocurrency holdings. The protocol leverages a proof-of-stake (PoS) consensus mechanism and provides a dual-token staking system for users to earn yields from staking Bitcoin and the platform’s native BounceBit token. In addition to earning yields from validating the BounceBit network, users can also earn via validating other DeFi and centralized finance (CeFi) projects that are a part of the BounceBit ecosystem. 

Analyst QuickTake: This investment marks Binance Lab’s second investment in Bitcoin staking platforms since it invested in Babylon in February . While both companies offer similar solutions, BounceBit aims to differentiate itself by enabling users to engage in CeFi arbitrage via an on-chain mirror mechanism supported by Ceffu's off-chain settlement solutions. This investment also adds to the USD 6 million in seed funding raised by the company in February and the strategic investment the company received from OKX in March.