In a recent announcement on Aug. 22 via X, SatLayer, a pioneering platform in the Bitcoin re-staking space, has successfully raised $8 million in a pre-seed funding round. This milestone was achieved with the backing of several prominent crypto-centric venture capital entities, including Castle Island Ventures and web3-focused Hack VC, who jointly led the round. The infusion of capital will propel SatLayer’s ambitions to introduce its re-staking product to the burgeoning Bitcoin ecosystem.

Introducing SatLayer: A New Horizon for BTC Staking

SatLayer emerges as a transformative platform, enabling users to unlock rewards by staking and liquid re-staking their BTC. The ecosystem is powered by Babylon, a formidable force that recently garnered $70 million in a funding round spearheaded by Paradigm. SatLayer’s unique proposition allows proof-of-stake networks, such as layer-2 chains, rollups, oracles, and data availability layers, to utilize BTC in their staking processes.

The platform offers a gateway for decentralized applications and infrastructure providers to participate as Bitcoin Validated Services (BVSs). Much like the role of actively validated services, dApps and other providers on SatLayer extend the opportunity for users to secure yield by locking their BTC.

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Maximizing Returns with Idle BTC

SatLayer presents an avenue for users to enhance the security of BVSs by depositing liquid staking tokens (LSTs) and, in return, earn rewards and network incentives. This process begins when users contribute Wrapped Bitcoin (WBTC) or BTC liquid staking tokens from platforms such as Solv Protocol, PumpBTC, pStake, Lombard, and Bedrock.

These deposited WBTC or LSTs bolster the security of BVSs, with users receiving receipt tokens as proof of their contribution. These tokens can then be restaked via SatLayer, enabling holders to commence generating returns.

Additional venture capital firms contributing to SatLayer’s pre-seed round include Franklin Templeton Digital Assets, OKX Ventures, and Mirana Ventures, further solidifying the platform’s potential in the rapidly evolving Bitcoin landscape.