BB Series (I): Detailed Explanation of BounceBit's CeDeFi Infrastructure
The BounceBit project really impressed me; they have mastered the CeDeFi infrastructure. In simple terms, CeDeFi is a combination of centralized finance and decentralized finance, and BounceBit has made significant innovations in this area. Their core is to build a dual-token PoS Layer 1 chain, secured by BTC and $BB, which not only borrows the stability of Bitcoin but also is EVM-compatible, making it easy for developers to get started.
Just think about it, when users deposit assets, they can enjoy institutional-level yield products. For example, through collaboration with CEFFU, users can re-stake their BTC to generate Liquidity Custody Tokens (LCT), earning interest in CeFi while mining or participating in RWA (Real World Assets) integration in DeFi. This system seamlessly connects on-chain and off-chain, with assets deposited into a regulated custody institution, ensuring safe compliance with digital custody on the mainnet. In terms of user experience, after depositing BTC, you receive BBTC or BBUSD as a receipt, then bridge to the BounceBit chain, stake with validators, and receive stBBTC, continuing to move around in the ecosystem to earn multi-layered returns.
What's even cooler is that their architecture is divided into three layers: on-chain DeFi yield, infrastructure PoS mining rewards, and CeFi financing rate arbitrage. For example, the MirrorX technology allows assets to mirror trading behaviors on-chain, with T+1 settlement for transparent reconciliation, avoiding the trust issues of traditional CeFi. BounceBit not only activates idle BTC but also transforms Bitcoin from a passive holding to an active earning tool. Overall, this infrastructure acts like a large furnace, fully exploiting the potential of the Bitcoin ecosystem, with high user participation and diversified returns, holding unlimited potential for the future.
