The concept of liquid restaking, a topic that has gained significant popularity in recent quarters, offers users the exciting possibility to extract additional value from their staked tokens., on the other hand, is delivering a BTC restaking infrastructure designed to provide a foundational layer for various restaking products.
You might be familiar with liquid staking protocols and their liquid staking tokens . It’s a mechanism that came to prominence with protocols like Lido. Users are able to stake their ETH into Lido and receive a synthetic representation of this ETH. This is a new token that’s supposed to be pegged to the value of ETH 1:1. They could then use this synthetic ETH to carry out various operations with other protocols that support it.
BounceBit, on the other hand, is building a BTC restaking infrastructure that’s designed to provide a layer for restaking products on the Bitcoin network.In a bid to reimagine Bitcoin’s value, BounceBit proposes an infrastructure designed based on the conviction that Bitcoin should be predominantly asset-driven at the infrastructure level.
BounceBit also leverages interoperability with other networks that are EVM-compatible, incorporating staked assets such as BTCB on the “Build ‘N’ Build” Chain and Wrapped Bitcoin . The purpose of accepting BTC, albeit staked, in the consensus mechanism, is to bootstrap the protocol with the deep liquidity that Bitcoin’s network has to offer, while also taking advantage of its relatively lower volatility.In a bid to balance the requirements for operating the network, BounceBit empowers its validators to charge a commission on the staking rewards.
It is a critical component of the functionality and the completion of BounceBit’s vision and purpose.
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: TheBlock__ - 🏆 464. / 53 Read more »