In the Bitcoin era, BTC has traditionally served as digital gold a secure store of value with limited yield potential. BounceBit, a CeDeFi Layer 1 blockchain, revolutionizes this by enabling passive income from idle BTC through innovative mechanisms like restaking, dual-token staking, and Liquidity Custody Tokens (LCTs). This user-focused approach enhances returns, security, and sustainability without users losing custody or BTC exposure, addressing Bitcoin's underutilization in DeFi ecosystems.
Core Mechanisms Unlocking Yields
BounceBit's dual-token Proof-of-Stake (PoS) integrates BTC (as BBTC) and native BB tokens for network security. Users deposit BTC with custodians like CEFFU or Mainnet Digital, receiving 1:1 BBTC or LCTs—on-chain representations that maintain liquidity.
BTC Restaking: Stake BBTC to validate transactions, earning BB rewards (up to 18.94% APY). This Bitcoin-native restaking allows
compounded yields: CeFi interest off-chain, PoS rewards on-chain, and DeFi opportunities like lending or farming. Users earn "parallel yields," making BTC productive without bridging risks
Dual-Token Staking: Delegate BB or BBTC to validators for passive rewards based on voting power. BTC provides robust backing, while BB incentivizes participation. No minimum stake required, with validators earning commissions for sustainability. TVL stands at $516M+, with $6.78M in organic fees YTD .
LCTs for Liquidity: These tokens enable trading, staking, or DeFi use (e.g., swaps, derivatives) while earning CeFi yields. Restake LCTs for extra BB rewards, blending security with composability.
From a user viewpoint, deposit 1 BTC, get BBTC/LCTs, stake for 18% APY in BB ($0.16/token), and layer DeFi for 20-30% potential returns. Tools like BounceBit Prime add RWA tokenization for diversified income .
Sustainability for the Long HaulBounceBit's economics tie emissions to activity, allocating 38% to incentives and 20% to vested contributors. By using PoS over mining, it promotes energy efficiency and carbon-neutral goals. Projected TVL growth to $1B+ by 2026 relies on fees from RWAs and AI integrations.
Challenges include volatility (BB at $0.1579, +18.95% daily) and regulations, but transparency via audits builds trust. BounceBit empowers BTC holders with sustainable, high-yield strategies, unlocking dormant capital for broader adoption.