BounceBit offers unique advantages for Bitcoin holders, significantly expanding their income-generating capabilities beyond traditional 'holding.' The main advantage lies in its innovative hybrid CeDeFi (Centralized-Decentralized Finance) approach.
Key Advantages of BounceBit for BTC Holders:
Yield for 'Inactive' BTC:
Traditionally, BTC sitting in a wallet does not generate income. BounceBit allows BTC holders to earn income from their assets without the need to sell or transfer them to less secure forms.
This transforms Bitcoin from a mere store of value into a multifunctional asset that can actively participate in the financial ecosystem.
Dual Yield:
Users can earn income from two sources:
Yield from CeFi: Through partnerships with institutional custodians, BounceBit enables income generation from funding rate arbitrage on centralized exchanges, which is a traditionally stable and high-yield instrument available to major players.
Yield from DeFi: Simultaneously, users can utilize their wrapped BTC (in the form of LCT) to participate in various DeFi protocols on the BounceBit chain (e.g., liquid staking, yield farming), earning additional rewards.
This unique combination maximizes potential income.
Security of Bitcoin and EVM Compatibility:
BounceBit leverages the proven security of Bitcoin in its dual PoS system.
Full compatibility with EVM means that developers can easily deploy existing Ethereum smart contracts on BounceBit, providing access to a rich DeFi ecosystem. This simplifies integration and development of new decentralized applications, expanding use cases for BTC.
Access to Institutional Yields for Retail Users:
One of the key features of BounceBit is providing access to high-yield institutional financial products that have traditionally been available only to large organizations. BounceBit makes these opportunities accessible to a broader range of users through a transparent and user-friendly interface.
Innovative Liquid Custody Tokens (LCT):
LCT (Liquid Custody Tokens) are tokens that represent your BTC held in custody by CeFi partners. These LCT allow you to earn interest from CeFi, while also being able to use these LCT in DeFi for restaking or other activities, maintaining asset liquidity.
High Throughput and Scalability:
The BounceBit blockchain is optimized for high throughput, allowing for a large number of transactions to be processed quickly and efficiently, ensuring a smooth user experience.
Decentralized Governance:
BB token holders gain governance rights, allowing them to influence the evolution and future of the platform, contributing to the creation of a truly decentralized and community-driven ecosystem.
BounceBit provides a powerful and innovative solution for BTC holders, enabling them not only to secure their assets but also to actively participate in shaping their yields, combining the best aspects of centralized and decentralized finance.