BB Series (Fifteen): The Parallel Yield Generation Mechanism of CeFi and DeFi
The parallel yield mechanism of CeFi and DeFi by BounceBit is truly a blessing for Bitcoin holders. It allows users to deposit BTC or BB and simultaneously enjoy the benefits from both sides: on the CeFi side, through regulated custodians like Mainnet Digital, transferring to CEX to earn interest, such as financing rate arbitrage; on the DeFi side, assets are bridged to the chain, staked to participate in PoS mining, earning node rewards, and can also engage in DEX and lending to earn additional income.
The specific process is as follows: users first deposit assets, convert them into LCT tokens like BBTC, and then bridge them to the BounceBit chain. CeFi earnings come from MirrorX mirror trading, with transparent on-chain reconciliation; DeFi uses stBB or stBBTC for re-staking, participating in ecological dApps, and seizing opportunities for profit. The BB token is key here, serving as gas fees, governance voting, and can also be double-staked with BTC to enhance security. User earnings accumulate, far exceeding a single model.
This mechanism addresses the pain points of Bitcoin, turning idle assets into active ones. For example, if a user deposits BB, CeFi provides stable interest, DeFi mining earns BB rewards, and can also be used in BounceClub's games or AI market. Risk control is also good, with over-collateralized lending preventing liquidation, and regulated custody ensuring safety. I believe this is particularly friendly to BB holders, maximizing returns without the hassle of on-chain and off-chain, just a simple deposit will suffice, and in the long run, it can also boost the value of BB.
