BounceBit: a revolutionary approach that gives Bitcoin actual value through restaking
Overview
BounceBit is the first native Bitcoin Restaking Chain project, blending Bitcoin security with decentralized finance dynamics, through a dual funding framework combining CeFi and DeFi.
BounceBit allows BTC holders to achieve diverse yields through:
Restaking Mechanisms
Centralized Finance (CeFi) Facilities
Decentralized Finance (DeFi) Activities
This combination gives Bitcoin an active role as a value-generating asset, instead of just being a store of value.
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System infrastructure
1. Dual-Token PoS Mechanism (Dual Token Staking)
The system operates intensively on a Layer-1 PoS session where validators contribute by staking both:
BBTC: a token representing BTC staked within the system (like Wrapped BTC)
BB: the native token of the BounceBit system
This model provides dual security, leveraging Bitcoin's liquidity and stability, along with interaction with the ecosystem.
2. The Dual Financial System CeFi + DeFi
Users' assets are stored with licensed centralized entities like Ceffu and Mainnet Digital, with transparent guarantees through on-chain traceability.
Free BTC is funded through strategies such as funding-rate arbitrage to achieve balanced (delta-neutral) returns.
3. CeDeFi Tokens – LCTs and LSD
LCT (Liquid Custody Tokens): tokens that represent backed collateralized assets (like BBTC) and allow utilization within the ecosystem.
LSD (Liquid Staking Derivatives): when delegating BBTC or BB, users receive tokens like stBBTC and stBB that can be used for further activities within the system.
4. BounceClub and App Store and Web3 Content Engine
A platform that allows for easy creation of decentralized applications (DeFi, GameFi, NFT, and others) within the BounceBit environment.
Achievements, funding, and expansion
An initial funding round of $6 million led by Blockchain Capital and Breyer Capital, with participation from major investors including OKX Ventures, Bankless Ventures, and others.
During the early access phase, the platform raised over $540 million in total value locked (TVL)
And with the launch of the mainnet in May 2024, the locked value exceeded 1 billion dollars and the number of early users reached around 400,000.
Unique Features
Maximizing the utility of Bitcoin without altering the original chain, through two levels: at the asset level and not the protocol.
Deep liquidity integration through BTCB and WBTC to provide easy access frameworks for users.
Advanced institutional objectives: launching BounceBit Prime to connect real-world assets (RWA) with traditional and institutional financing strategies.
Fully compatible with EVM, paving the way for smart contract execution and ease of development based on Ethereum.
Decentralized governance through the BB governance token, used for voting and funding features.
Community Experience (from Reddit)
Users and the cryptocurrency community on Reddit noted that BounceBit provides a 'bridge between DeFi and CeFi' and transforms Bitcoin from a static asset to an active asset generating yield:
> 'By implementing funding rate arbitrage and issuing on-chain certificates for restaking and mining, BounceBit integrates the best aspects of centralized and decentralized finance.'
Summary
BounceBit brings a new spirit to the world of crypto finance through:
Transforming Bitcoin from dormant value to a value-generating asset.
Integrating CeFi and DeFi for multi-faceted yields.
Enhancing security through dual PoS and EVM compatibility with extensive liquidity.
Institution-ready through Prime and integration of real assets.
