BounceBit is preparing to launch its native lending protocol, which will allow users to deposit BB, BTC, and stablecoins as collateral to borrow other assets directly on-chain. The protocol is set to enter mainnet in late August 2025, and today, the development team released the first details about its interest rate structure.
Borrowing rates will be dynamic, starting as low as 3.5% APR for stablecoins and 4.2% APR for BB-backed loans. Collateral factors vary by asset type — BB tokens can be used at up to 70% loan-to-value (LTV), while BTC and stablecoins can be used at up to 80% LTV.
One of the most innovative features is the protocol’s yield-linked borrowing, where users who also stake BB or BTC will receive reduced interest rates. This mechanism incentivizes deeper participation in the BounceBit ecosystem while keeping capital active.
The lending protocol will also integrate with BounceBit’s upcoming NFT staking platform, allowing rare NFTs to be used as collateral. This is a first-of-its-kind integration that could open up new liquidity options for NFT holders.
The launch of this lending protocol represents another major step in BounceBit’s goal of becoming a fully integrated financial ecosystem, where users can earn yield, borrow, and trade without leaving the network.
Given the growing demand for decentralized lending services, analysts expect this feature to significantly boost TVL and daily active users.
