A Fusion Experiment of CeFi and DeFi
In the development of Web3, CeFi and DeFi have always been separated: CeFi has the advantages of compliance and custody, but lacks transparency; DeFi has openness and composability, but faces prominent security risks and compliance challenges. The model proposed by BounceBit is actually a fusion experiment of CeFi and DeFi.
Under the BounceBit architecture, BTC first enters the custodial institution, which ensures asset security and compliance foundation. Subsequently, these BTCs will be mapped to the chain and enter the BounceBit network to participate in staking and profit distribution. In other words, while enjoying on-chain returns, users still retain the safety net at the CeFi level. This "double guarantee" model greatly reduces the psychological threshold for users to enter the BTC financialization scenario.
On the other hand, BounceBit's revenue network is not limited to a single mining or lending, but is expanded to more scenarios through modularization. For example:
Staking as Yield: Users can earn basic income through validation nodes by depositing BTC;
DeFi Combination: Connect with lending, stablecoin, and derivatives protocols to form diversified revenue channels;
Cross-Chain Expansion: As a liquidity bridge between BTC and other public chains, expand application boundaries.
The unique significance of this architecture lies in the fact that it may become the best practice case for the combination of CeFi and DeFi in the crypto industry. If successful, BounceBit will prove that CeFi and DeFi are not opposites, but can complement each other, thereby forming greater capital attractiveness and user base.
Therefore, BounceBit is not only a BTC revenue platform, it is actually an explorer of the evolution of financial forms in the crypto industry.
