The Power of the Fusion of CeFi and DeFi: How BounceBit Constructs a Hybrid Revenue Model
In the crypto world, centralized finance (CeFi) and decentralized finance (DeFi) are often seen as two opposing camps. CeFi has mature asset management strategies and high liquidity, but transparency and trust costs are its pain points; DeFi is known for its transparency and permissionless nature, but sometimes has limitations in revenue opportunities and user experience. What makes BounceBit unique is that it does not simply choose one or the other, but innovatively merges the advantages of both. It securely deposits users' BTC by collaborating with regulated custodians such as Ceffu (formerly Binance Custody) and generates underlying revenue through mature CeFi strategies like off-chain arbitrage and quantitative trading. At the same time, BounceBit has built an EVM-compatible Layer 1 public chain where users can participate in various DeFi activities on-chain, such as liquidity mining and lending, to earn additional on-chain revenue. All of these earnings and asset statuses are transparently mapped and settled through on-chain mechanisms. This hybrid model leverages the high efficiency and stability of CeFi while retaining the transparency and composability of DeFi, providing BTC holders with an unprecedented, secure, and diversified source of revenue.
