Botanix Labs recently secured $8.5 million in funding to develop a Bitcoin-specific DeFi ecosystem. This funding will be used to create Spiderchain, a Layer-2 network designed for Bitcoin. The goal of Botanix Labs is to support a global financial system that revolves around Bitcoin infrastructure.

After completing a $3 million pre-seed round in June 2023, Botanix Labs has now raised a total of $11.5 million in funding. This round included investments from angel investors and various capital firms. The funds will be used to focus on product development and expanding the team.

Spiderchain, the Layer-2 network created by Botanix Labs, is named for its unique way of securing funds using multi-signatures on the Bitcoin base layer. This technology allows applications from the Ethereum ecosystem to be used on Bitcoin quickly. Users can withdraw funds to Web3 wallets like MetaMask directly from exchanges without using wrapped assets, enhancing the overall Bitcoin network.

According to Botanix Labs, their test network has seen significant activity with over 200,000 active addresses, 10,000 experimental token launches, and the development of various decentralized applications. The main network launch for Spiderchain is anticipated for early summer. Some of the Dapps in progress include decentralized exchange Bitzy and the Bitcoin-backed stablecoin Palladium.