In the cryptocurrency world, Bitcoin is often viewed as a store of value, but its potential for generating income has been largely untapped. BounceBit, a pioneering platform, is changing this through its innovative CeDeFi (centralized decentralized finance) model, opening up new avenues for Bitcoin holders to earn income.
BounceBit's core concept is to merge the security and stability of centralized finance (CeFi) with the high-yield opportunities of decentralized finance (DeFi). It aims to address the dilemma faced by many Bitcoin holders: they want their assets to appreciate in value, rather than just sit idle waiting for prices to rise.
Key Highlights
BTC Restaking: BounceBit is the first native BTC restaking chain, allowing users to restake their Bitcoin across multiple networks to earn additional rewards.
CeDeFi Infrastructure: The platform provides users with institutional-grade yield products by combining the advantages of CeFi and DeFi.
Real World Asset (RWA) Integration: BounceBit is actively integrating real world assets to further broaden its revenue sources.
BounceBit’s Operational Model: The Power of CeDeFi
BounceBit enables users to profit from both on-chain (DeFi) and off-exchange (CeFi) activities through its unique CeDeFi architecture.
At the heart of its workflow are Liquidity Custody Tokens (LCTs). Users deposit their assets with a regulated custodian, such as CEFFU's mirrorX solution, and receive LCTs for on-chain use. This means users can enjoy the security of centralized custody while also participating in on-chain re-staking and DeFi mining activities, maximizing their potential returns.
Dual-token PoS mechanism: Enhanced security and incentives
The BounceBit chain is a first-layer network that uses a Proof-of-Stake (PoS) consensus mechanism. Its unique feature is that it uses a dual-token system.
BBTC: This is Bitcoin encapsulated on the BounceBit chain, representing the Bitcoin staked by users.
BB: This is the native token of the BounceBit ecosystem.
Validators are required to stake both BBTC and BB tokens to secure the network. This dual-token mechanism not only leverages the security of the Bitcoin network but also incentivizes users to actively participate in network governance and security maintenance through BB tokens. Users can secure the network and earn rewards by staking either BB or BBTC.
Main features and advantages
Diverse income opportunities: Users can earn income in a variety of ways, including premium income from funding rate arbitrage, staking rewards as node operators, and hybrid income combining CeFi and DeFi.
Enhanced Security: All user funds are stored in a secure custody solution using the MPC wallet.
EVM Compatibility: BounceBit is fully compatible with the Ethereum Virtual Machine (EVM), allowing developers to easily migrate their applications to the BounceBit ecosystem.
BounceClub: This is an on-chain Web3 world where users can customize, launch, and participate in various decentralized applications (dApps), further expanding the application scenarios of the ecosystem.
Recent Developments and Outlook
BounceBit recently integrated Franklin Templeton's tokenized money market fund, BENJI, into its BB Prime platform. This collaboration, combining the yield of U.S. Treasuries with decentralized finance strategies, marks the first real-world application of tokenized real-world assets (RWAs) in an active income strategy and a significant milestone in the development of CeDeFi.
In short, in an environment where "just holding Bitcoin" no longer meets the needs of all investors, BounceBit offers an innovative solution that puts Bitcoin to work for you. Whether exploring DeFi derivatives, generating passive income, or building applications on the BTC native chain, BounceBit provides the necessary platform and tools.
