Bounce Bit offers a unique approach by combining the world of decentralized finance (DeFi) with the profitable strategies of centralized finance (CeFi). This "additional income from CeFi arbitrage" is a key part of their offering.@BounceBit
What is CeFi arbitrage?
Arbitrage is a strategy that exploits minor price differences of the same asset across different markets. For example, if the price of bitcoin on exchange A is $60,000 and on exchange B it is $60,010, an arbitrage bot can instantly buy it on exchange A and sell it on exchange B, making a profit of $10.
This strategy is stable and low-risk, as it does not depend on the overall market movement, but rather on temporary price deviations. Institutional traders and large funds have long used such methods as they have access to high-speed trading systems and large capital volumes.
How does Bounce Bit provide access to it?
Typically, the average crypto investor finds it difficult to implement such strategies independently due to high capital requirements, technical knowledge, and execution speed. Bounce Bit addresses this issue by acting as an intermediary.
Capital accumulation: Users stake their bitcoins in the Bounce Bit protocol. These funds are accumulated, forming a large pool.
Transfer to CeFi platforms: Part of this pool is transferred to reliable centralized exchanges, such as Binance, where Bounce Bit has partnerships.
Executing arbitrage: On these platforms, professional trading bots developed by Bounce Bit automatically execute arbitrage operations.
Profit distribution: The profits earned from arbitrage are returned to the protocol and distributed among all staking participants.
Thus, Bounce Bit democratizes access to institutional income. Instead of competing with major players, you become part of a collective pool that benefits from their strategies. This income is added to the base staking rewards, significantly enhancing overall profitability for users.#BounceBitPrime
