Friends, if you think Bitcoin can only 'lie flat' in your wallet, then the BounceBit project might refresh your understanding. It has accomplished something significant: allowing Bitcoin (BTC) to not only maintain the security of the Bitcoin network but also to 'work' on other chains to earn profits!
How does this work specifically? Imagine that you stake the BTC you hold to the BounceBit platform. BounceBit will use a hybrid model of 'cross-chain bridge + custody' to map the value of your BTC to its own chain (BounceBit Chain), generating a certificate called 'BBTC'.
Next, there are two main ways for your BBTC to 'work':
Act as a security guard for the network: The BounceBit chain itself also needs security, and it uses a mechanism called 'Proof of Stake (PoS)'. You can delegate your BBTC to node operators to jointly maintain network security and earn block rewards.
Make money in DeFi: You can invest BBTC into various decentralized finance (DeFi) protocols within the BounceBit ecosystem, such as lending, providing liquidity, etc., to earn additional returns.
In simple terms, BounceBit has built a security ecosystem centered around Bitcoin, allowing BTC holders to earn additional returns without sacrificing the original security of Bitcoin. The $BB token serves as the governance and utility token of this ecosystem, used for paying transaction fees, participating in governance, and incentivizing ecosystem participants. This undoubtedly provides a brand new income outlet for the vast Bitcoin capital.
