As a seasoned crypto investor with years of experience in this dynamic digital market, I find the recent development surrounding SaltLayer particularly intriguing. Having witnessed the rise and fall of numerous projects, it’s refreshing to see a Bitcoin-powered restaking platform like SaltLayer garner such significant backing from esteemed venture capital firms.
A Bitcoin-based re-staking platform called SaltLayer, which operates under the Babylon staking protocol, recently concluded an $8 million investment round in its pre-seed stage.
As per a statement released on August 22 via X, the Bitcoin (BTC) reinvestment platform has secured support from multiple crypto-centric venture capital companies. Leading this pre-seed round were Castle Island Ventures and web3 venture capital firm Hack VC, with both firms jointly taking the helm. The obtained funds will be utilized to make the reinvestment product available in the expanding Bitcoin market.
What is SaltLayer?
With SatLayer, users can accumulate rewards on their Bitcoin (BTC) through a process called staking and liquid restaking. Notably, Babylon – having successfully raised $70 million in a funding round spearheaded by Paradigm – is the driving force behind this ecosystem. The Babylon platform facilitates proof-of-stake systems that can utilize Bitcoin across layer-2 chains, rollups, oracles, and data availability layers for staking purposes.
Using SaltLayer, it’s possible for any service provider offering decentralized applications or infrastructure to become part of the Bitcoin Verified Services network. This is similar to Active Validated Services, where SaltLayer-connected dApps and other providers give users the option to deposit Bitcoin for earnings.
Earning rewards in idle BTC
Users can store their staking tokens tied to Bitcoin for enhanced security and receive rewards and network advantages by doing so. This process begins when users deposit Wrapped Bitcoin (WBTC) or Bitcoin liquid staking tokens from Solv Protocol, PumpBTC, pStake, Lombard, or Bedrock initially.
1. Way of Paraphrasing: Wrapped Bitcoin Tokens (WBTC) or Linked Staked Tokens (LSTs) serve as a security for Bitcoin Verified Service Providers (BVSs), with users receiving tokenized receipts that signify their deposited funds. By using these tokens, stakeholders can reinvest through SaltLayer to start earning returns.
In addition to SaltLayer’s pre-seed funding, venture capital firms such as Franklin Templeton Digital Assets, OKX Ventures, and Mirana Ventures also made investments in the company.
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2024-08-22 18:56