CeFi side custody earns basic interest, while the on-chain side uses LCT (Liquid Custody Token) to turn this custody certificate into a transferable asset! (BBTC/BBUSD), then bridges LCT to BounceBit L1 for PoS and strategies, forming a one-stop service of 'custody interest + programmable on-chain + re-staking.' The official user guide is very straightforward: depositing BTC/USDT into the designated network will automatically mint BBTC/BBUSD (on the corresponding chain), and then one-click bridge it to the BounceBit chain for use.
The stability on the CeFi side relies on collaboration with Ceffu: introducing MirrorX for off-exchange settlement and fund reconciliation, allowing asset managers to execute hedging/arbitrage on the exchange side, but the asset itself is within custody, not transferred manually, reducing operational risk. Ceffu's case page and announcements have made this clear — 'MPC custody + MirrorX settlement' is the underlying framework of BounceBit CeDeFi.
Once on the chain, BBTC/BBUSD are not 'dead tickets.' They can be bridged to the BounceBit chain, and then entered into PoS/re-staking or other DeFi strategies; redemption also has a clear process: according to official documentation, 'redemption can be collected one day after initiation; at the same time, a maximum of 10 pending redemption requests,' with details outlined in the user guide (early batches had a T+7+1 historical arrangement, which is a phased rule).
Why is this CeDeFi model important? Traditional 'wrapped BTC' often relies on multi-signature or single custody, which concentrates risk; BounceBit separates the rights confirmation and liquidity using a method of 'verifiable custody → mint LCT → on-chain reuse,' without sacrificing auditability on either side. Adding EVM compatibility (the full suite of Solidity/Hardhat/Foundry) makes it easier to migrate existing Ethereum applications to an environment with 'BTC as a security anchor.'
You can understand this as: CeFi is like a power plant, DeFi is like a power strip. The electricity (revenue) is first stably generated at the plant, then connected to the chain via LCT as a 'line,' supplying power to these 'devices' like PoS, LP, and lending; you can unplug it anytime (redeem) and return to the meter (custody) for reconciliation. The clear process and defined roles are the biggest advantages of this design.
The core of BounceBit is not to 'create another BTC,' but to twist custody earnings, on-chain programmability, and re-staking into a verifiable, redeemable, and reconcilable closed loop.
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