I'll guide you step by step through Bouncebit! Besides staking, what other potential wealth codes are there?
After hearing so much about Bouncebit, I believe many friends are eager to know how ordinary users like us can participate and benefit.
Don't worry, this article is your practical guide. We won't discuss those complex concepts, just talk about how to play specifically and what risks to pay attention to.
Step 1: Enter the 'ticket' of the ecosystem
The first step to participating in the Bouncebit ecosystem is, of course, to deposit your assets. Bouncebit has designed a very user-friendly entry called 'Premium Yield' (which can be understood as 'preferred yield').
The operation process is roughly as follows:
Deposit assets: You can deposit your BTCB (Bitcoin on Binance Smart Chain) or other supported assets into Bouncebit through the official website.
Getting the certificate: After depositing, the system will give you a liquid staking token (LST). For example, if you deposit BTCB, you will receive aBBTC. This aBBTC is your 'ticket' to roam in the Bouncebit world. It represents the ownership of your original asset and is generating interest for you.
This step is very simple; it basically involves connecting your wallet, authorizing, and depositing.
Step 2: Three mainstream play methods, find the one that suits you
After getting the 'ticket' aBBTC, the good show has just begun. Currently, there are mainly the following ways to play:
Play method 1: The most worry-free - Node Staking
This is the most direct and reliable way to play. You can find the Staking page on the Bouncebit official website, choose a validator node that looks good to you, and then stake your aBBTC (and/or other tokens) to it.
Source of income: You will continuously receive tokens distributed by the Bouncebit network as rewards.
Advantages: Simple operation, relatively low risk, belongs to 'passive income.'
Suitable audience: 'Lazy' investors who pursue stable returns and do not want to fuss.
Play method 2: Love to hustle - Play with ecological DApps (BounceClub)
Bouncebit is actively building its application ecosystem BounceClub. As the ecosystem matures, various decentralized applications (DApps) will emerge, providing us with more opportunities.
What can you do?
Liquidity mining: Provide liquidity for your favorite trading pairs in the decentralized exchange (DEX) within the ecosystem, earning fees and project rewards.
Lending: Use your aBBTC as collateral, borrow other assets for operations, or deposit idle assets into lending protocols to earn interest.
Participate in new projects: Pay attention to those 'early mining' projects launched on Bouncebit, as early participation often brings surprises.
Advantages: Potential returns may be higher, diverse ways to play, full of fun.
Suitable audience: DeFi players who like to study new projects and have a slightly higher risk tolerance.
Play method 3: Look to the future - Focus on 'Shared Security' (SSC)
This is a more advanced concept, but it's worth knowing in advance. In the future, Bouncebit will launch 'Shared Security Clients' (SSCs).
Simply put, other new projects (like another side chain, an oracle network, etc.) can come to 'rent' Bouncebit's security. The 'rent' they pay will be shared with us users who have staked BTC. This means that the BTC you stake may not only serve Bouncebit in the future but also serve multiple other projects simultaneously, earning returns from these projects. This is the ultimate form of re-staking narrative, with huge potential.
Risk warning! Risk warning! Risk warning!
Having discussed so many opportunities, we must also pour some cold water. When participating in any crypto project, risk must be prioritized:
Smart contract risk: Code is law, but the code may have vulnerabilities. Before participating in any DApp, check if it has undergone professional auditing.
Centralization risk: Bouncebit's CeDeFi model relies on custodians. Although they are regulated institutions, the theoretical risk of 'running away' or operational risks still exists.
Market volatility risk: The rewards you receive in tokens will fluctuate with the market. You understand the ups and downs of the crypto world.
For friends who want to participate in Bouncebit, my advice is: start small, observe and learn more. First, use a small part of your funds that you can afford to lose to experience the whole process, from deposit and staking to participating in DApps, to get familiar with the path. Never go all in at the beginning!
Bouncebit has opened a new door, the scenery behind the door is beautiful, but there may be pitfalls along the way. Stay curious and cautious to go further in this treasure hunting journey in the crypto world.