Most Bitcoin just… sits there. Over $1 trillion worth of BTC is locked away in cold wallets, exchange reserves, or long-term storage, doing nothing. For years, only big institutions and hedge funds had the tools to put it to work.
@BounceBit wants to change that.
This new Layer-1 blockchain (fully EVM-compatible) blends CeFi and DeFi into something they call CeDeFi—a system where your Bitcoin can earn high, institutional-grade yields while still being usable in DeFi.
Think of it as giving your BTC two jobs:
One in traditional finance—earning steady, reliable returns.$BB
One in the crypto world—staking, farming, lending, and more.
CeDeFi in Plain English
Normally, if you put your BTC into a centralized yield product, it’s locked up and you can’t use it anywhere else. If you go purely DeFi, you miss out on the bigger yields available to large institutions.
BounceBit merges the two:
1. You deposit BTC or stablecoins with a regulated custodian (think of them as the vault).
2. You get an on-chain token in return—BBTC for Bitcoin or BBUSD for stablecoins.
3. These tokens are fully backed 1:1 and can be traded, staked, or used in DeFi.
4. Meanwhile, the original BTC or stablecoins are earning off-chain institutional yields.
You’re getting the safety and returns of CeFi plus the flexibility and transparency of DeFi—at the same time.
Making Idle Bitcoin Work (Restaking)
BounceBit’s big unlock is restaking—turning passive BTC into an active asset.
When you restake BTC on BounceBit:
It helps secure the network through Delegated Proof-of-Stake.
You earn validator rewards.
You still keep liquidity through the BBTC token.
The beauty is that your BTC never leaves regulated custody—it’s secured with proof-of-reserves and MPC multisig—but you can still deploy it across DeFi for extra yield.
How the Chain Works
BounceBit runs its own network, built on Cosmos SDK but fully EVM-compatible for easy smart contract deployment.
It uses a dual-token staking system:
50 validators total.
25 chosen by BB token stake.
25 chosen by BBTC (Bitcoin) stake.
This setup anchors part of the chain’s security to Bitcoin’s market cap, making it more stable for a new network while keeping PoS efficiency.
Bridging is handled via regulated partners like Ceffu and Mainnet Digital, ensuring assets are safe while moving between chains.
Where the Yield Comes From
BounceBit isn’t relying on one source of income—it stacks multiple strategies:
Staking Rewards: From securing the network.
Institutional Interest: Off-chain yields through custodial partners.
Funding Rate Arbitrage: Market-neutral trades between spot and perpetual futures.
Basis Trading: Capturing spreads between futures and spot markets.
DeFi Farming: Using LCTs in on-chain liquidity pools and lending protocols.
Tokenized Treasuries: Reliable yields from products like Franklin Templeton’s BENJI or BlackRock’s BUIDL.
Ecosystem Incentives: Bonus rewards for governance, liquidity, and campaigns.
It’s basically a yield layer cake—stacking traditional and crypto strategies for maximum return.
The $BB Token
Total Supply: 2.1 billion
Uses: Staking, gas fees, governance, ecosystem currency
Staking: Dual-token PoS (BB + BBTC)
Liquid Staking: stBB and stBBTC let you keep your assets liquid while staked
Governance is DAO-style, meaning BB holders can vote on proposals and protocol upgrades.
The People Behind It
CEO Jack Lu leads the project, backed by serious investors like Binance Labs, Blockchain Capital, and Breyer Capital.
Key partners include:
Custody: Ceffu (MirrorX), Mainnet Digital
RWA Integration: Franklin Templeton, BlackRock
Exchanges: Binance, Coinbase, KuCoin, Gate.io
Recent Milestones
May 2024: Mainnet launch
Nov 2024: CeDeFi V2—multi-chain asset support and boosted APYs
2025: Integration of tokenized Treasuries into live yield products, TVL hitting ~$500M
Why It’s Different from the Competition
Other Bitcoin-focused projects like Babylon or Stacks also aim to put BTC to work, but BounceBit’s model is more yield-centric and CeDeFi-focused.
Babylon: No wrapped BTC—focuses on BTC as a security layer for Cosmos chains.
Stacks: Anchors to Bitcoin PoW for finality.
BounceBit: Mints BBTC, runs its own PoS network, and integrates CeFi yields with on-chain liquidity.
It’s not just about securing chains—it’s about maximizing returns.
Risks to Keep in Mind
Custody Risk: Your BTC is held off-chain, so counterparty trust is essential.
Bridge Risk: Cross-chain systems are prime hacking targets.
Regulatory Risk: CeDeFi may face legal hurdles in different jurisdictions.
Competition: New BTC-yield projects are appearing fast.
Complexity: The system has a learning curve for newcomers.
Bottom Line
@BounceBit is building a bridge between two worlds that have always been separate—CeFi’s scale and reliability with DeFi’s openness and flexibility. If it delivers on security and ease of use, it could transform Bitcoin from a static store of value into a dynamic, yield-generating asset for everyone.
For BTC holders, that means no more “just hodl.” You can hold, earn, and build—all at the same time.