At @BounceBit , security isn’t an afterthought it’s built into everything. All staked Bitcoin is held by licensed custodians like Mainnet Digital, Ceffu’s MPC, and Fireblocks. These partners follow strict KYC, KYT, and AML rules, so the BTC securing the network stays safe from hacks or fraud.
The network itself runs on a dual-token Proof-of-Stake system. Bitcoin provides the raw security, while $BB keeps validator incentives in check. Validators must stake both BTC and BB, meaning any attack would require a huge amount of both not exactly cheap or easy. Plus, governance rules make sure validators stay accountable: they can set fair commissions to cover costs, but poor performance or malicious behavior means losing rewards for the entire epoch.
Transparency is just as important as security. BounceBit publicly shares its audit reports and on-chain data. All smart contracts have been reviewed by third-party auditors (most recently in Feb 2024), and the reports, contract addresses, and findings are available in the docs. Because part of the TVL is held off-chain, trusted firms like Mainnet Digital also verify those balances. The first proof, published in Feb 2024, confirmed that every BBTC and BBUSD token is backed 1:1 by real BTC or USD in custody.
On top of that, some activities like launching tokens or running BounceClub contracts require whitelisting or KYC to keep things clean. High-risk components are given legal protections, and the chain itself benefits from Cosmos’s rock-solid Tendermint tech.
Put it all together regulated custody, verified reserves, audited code, and strict economic penalties and you’ve got a security setup that’s built for institutions but stays open and verifiable for the community.