Original author: Sleeping in the Rain
Restaking has become one of the most popular concepts on the market this year.
Restaking is the act of repeatedly pledging mainnet liquidity staking tokens to support other blockchain networks. At the same time, Restaking will also bring the possibility of more income from liquid staking tokens.
This kind of Restaking is common on Ethereum, but related protocols also appear on the Cosmos and Solana networks. Restaking protocol is used to expand and expand the influence of Cosmos ecological Layer 1 and Solana. Even Ronin, a public gaming chain, announced the launch of the $RON re-staking function.
In addition, what is most easily overlooked by us is the emerging BTC Restaking ecosystem.
As the most important asset in the Crypto world, BTCs asset interest is often generated through lending, and Restaking - using pledged BTC assets to protect other networks, can open up another interest-earning path for BTC.
Currently, there are two protocols in the BTC ecosystem that are doing this: @bounce_bit and @babylon_chain
Let’s briefly talk about these two BTC Staking chains.
The core of these two chains is Staking:
BounceBits 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 the bounceBTC pledge. Users can also gain more income 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.
Babylons staking is self-custodial, 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and the BTC chain to prevent users from withdrawing from staking on the BTC chain, but it shows that they have not withdrawn from the PoS chain.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.
At present, the financing situation of the two is as follows:
BounceBit previously completed a $6 million seed round of financing, co-led by Blockchain Capital and Breyer Capital.
Babylon completed an $18 million Series A round of financing in December last year, led by Polychain Capital and Hack VC, with subsequent additional investment from Binance Labs.
Essentially, both BounceBit and Babylon want to provide BTC Holders with higher income possibilities on the basis of 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, BounceBits product line is easier to understand. Currently, BounceBit has launched a deposit activity-users can earn points through deposits to obtain future airdrops. Babylon currently has no relevant deposit activities, but Babylon has started testnet activities. Complete the task to receive the second Babylon Beacon Badge NFT.
