BB Series (16): User Experience in BounceBit TVL
On the BounceBit platform, the way users experience total value locked (TVL) is quite down-to-earth, unlike some projects that are more abstract. It essentially involves putting your assets in, allowing them to generate more value while maintaining safety and flexibility. Imagine you have Bitcoin or other crypto assets that you want to put to work without taking on too much risk. BounceBit's CeDeFi model comes into play here.
First, you deposit assets, such as BTC, which will be directly transferred to a regulated custodian, like Mainnet Digital. This step ensures compliance and safety, and you will receive vouchers like BBTC or BBUSD as your proof. It feels like depositing in a bank, but more transparent because everything is traceable on-chain. Next, you can choose different asset management strategies, which are listed like a menu on the platform's page. Some focus on arbitrage, while others lean towards lending, each with its own incentive plan. For example, you can participate in Binance's financing rate arbitrage, taking advantage of the price differences between futures and spot to earn returns without having to operate manually.
Then comes the bridging step, where you bridge your LCT tokens to BounceBit's Layer 1 chain. This operation is simple and can be done through portal.bouncebit.io, requiring no complex cross-chain knowledge. After bridging, you can use these assets to participate in staking, such as delegating to validator nodes in exchange for liquid staking tokens like stBBTC. It can not only earn node rewards but also be put into DeFi applications to continue earning, such as liquidity mining or leveraged trading.
Throughout the process, users enjoy the most from the accumulation of multiple earnings: stable interest from CeFi, staking rewards from PoS, combined with opportunity earnings from DeFi. The higher the TVL, the more vibrant the platform ecosystem, and as a participant, you can share in more dividends. Of course, risk control is also well in place, with end-to-end encryption and real-time auditing. In summary, engaging with TVL on BounceBit is not just about locking assets but about making them come alive to help you earn abundantly.
