BounceBit Overview – Bridging Bitcoin, CeFi, and
Introduction
BounceBit is a middleware protocol focused on Bitcoin, aiming to expand its network through an innovative concept called BTC Restaking. By integrating elements from both Centralized Finance (CeFi) and Decentralized Finance (DeFi), BounceBit offers a unified platform that unlocks new ways to use Bitcoin beyond simple holding or trading.
How BounceBit Works
At its core, BounceBit’s BTC Restaking lets Bitcoin act as a security backbone for a variety of blockchain applications. This approach supports multiple use cases including:
Sidechains and fast-finality layers
Cross-chain bridges
Virtual machines
Data availability layers
The main goal is to pool security by restaking Bitcoin, enabling different network components to function with Bitcoin-backed trust.
CeFi + DeFi Integration
BTC Restaking relies on regulated custodial services, meaning Bitcoin—whether native BTC, BTCB (on BNB Chain), or WBTC—is held safely by regulated custodians who provide:
On-chain transparency via integration technology
Audited balance sheets for accountability
Yield generation strategies like delta-neutral funding rate arbitrage
Once deposited, Bitcoin is wrapped into a blockchain-friendly token (e.g., bounceBTC) that can be used within the BounceBit ecosystem.
Shared Security Clients (SSCs)
SSCs are applications that utilize Bitcoin’s security through restaking, including:
Sidechains
Oracles
Bridges
Keeper networks
Virtual machines
Data layers
Developers can leverage Bitcoin’s validation without building their own trust systems, enabling faster innovation, enhanced security, and a wider range of decentralized services.
User Opportunities with BTC on BounceBit
Within BounceBit, BTC holders can:
1. Delegate BTC to Validators, receiving Liquid Staking Derivatives (stBBTC) that can be restaked or used in other DeFi activities.
2. Stake directly to SSCs such as oracles or bridges.
3. Participate in DeFi activities like AMMs, farming, or leverage trading.
