⚙️ CeDeFi in Action: How BounceBit’s Liquidity Layer Works
At the core of BounceBit’s innovation is a seamless fusion of centralized liquidity and on-chain composability—CeDeFi, not as a buzzword, but as a working mechanism.
Here’s how it flows:
Users deposit BTC (or WBTC/BTCB) into CEFFU’s MPC custody
In return, they receive Liquidity Custody Tokens (LCTs): BBTC or BBUSD
These LCTs are fully redeemable 1:1 and trade as ERC-20s on BounceBit’s EVM chain
Users can either:
– Restake them into on-chain validators
– Use them in DeFi protocols for yield farming
– Hold passively while earning off-chain funding rate arbitrage yield
What makes this unique is dual-stream yield—users capture centralized yield from CeFi strategies (via Binance) and simultaneously earn on-chain staking or farming rewards.
And all of it is done without relinquishing underlying BTC custody.
BounceBit doesn’t just offer DeFi to Bitcoin holders. It gives them access to institutional-grade liquidity engines, while maintaining transparency, auditability, and composability.
