A brief discussion on the emerging BTC Staking ecosystem

Restaking has become one of the most popular concepts on the market this year.

Restaking is a strategy for re-staking mainnet liquidity staked tokens to support other blockchain networks. This approach also increases the earning potential of liquid staking tokens.

Restaking is common on Ethereum, while there are similar protocols on the Cosmos and Solana networks. These restaking protocols are designed to expand the Cosmos and Solana ecosystems and increase their influence on Layer 1. In addition, even game public chains like Ronin have launched the re-staking function of $RON.

In addition, what is most easily overlooked by us is the emerging BTC Restaking ecosystem.

As one of the most important assets in the cryptocurrency world, BTC’s asset appreciation is usually generated through lending. Restaking is a method of using pledged BTC assets to protect other networks, providing another way for BTC to add value.

Currently, there are two protocols in the BTC ecosystem that are doing such things: @bounce_bit and @babylon_chain

Let’s briefly talk about these two BTC Staking chains.

The core of these two chains is Staking:

• BounceBit’s Staking is handed over to the CeFi custodian, and bounceBTC is minted on the BounceBit chain. At this time, the user can entrust bounceBTC to the Staking operating node, and the operating node will give the user stBTC, the liquid version of bounceBTC pledge. Users can also gain more earning possibilities in on-chain DeFi through stBTC. This means that bounceBTC users will receive three types of income: 1. CeFi income; 2. Staking income; 3. DeFi income.
• Babylon’s staking is self-hosted, and the custody contract is expressed by UTXO transactions. What Babylon is doing is building three secure sharing protocols: the Bitcoin Staking Protocol, the Bitcoin Timestamp Protocol, and the Bitcoin Data Availability Protocol. Let’s briefly talk about the "Bitcoin Timestamping Protocol": The Bitcoin Timestamping Protocol is used to synchronize the PoS chain and the BTC chain to prevent users from withdrawing from staking on the BTC chain, but it shows that they have not withdrawn from the PoS chain. Keep voting to stay involved in governing this situation.

The current financing situation of the two is as follows:

• BounceBit has previously completed a $6 million seed round of financing, jointly led by Blockchain Capital and Breyer Capital. cast.
• Babylon completed an $18 million Series A round of financing in December last year, led by Polychain Capital and Hack VC, with additional investment from Binance Labs.

Essentially, both BounceBit and Babylon want to provide BTC Holders with higher income possibilities based on BTC value storage. Babylon has built a BTC Restaking infrastructure in the form of self-custody. When considering restaking, BounceBit adopts the form of hosting BTC by CeFi institutions, and BounceBit has already thought out the future of restaking, including LRT, DeFi adoption, etc. Users should be able to use it directly after it is on the main network. These products are used to increase BTC yields.

For users, BounceBit’s product line is easier to understand. Currently, BounceBit has launched a deposit activity-users can earn points through deposits to obtain future airdrops. There is currently no relevant deposit activity for Babylon, but Babylon has launched a testnet activity. Complete the task to receive the second Babylon Beacon Badge NFT.

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