What will happen if I put my Bitcoin into BounceBit? How are those cool-sounding "parallel earnings of CeFi+DeFi" achieved?
Don't rush, let's put on a microscope and trace your BTC step by step to see how it transforms from a quiet store of value into a multi-threaded "money-making machine."
First stop: the safe and compliant "vault" - CeFi custody
The starting point of everything is when you deposit BTC into the system. This first step is handled extremely cautiously by BounceBit. Your assets do not go directly into some unknown smart contract but are transferred into a regulated custody service provided by Mainnet Digital. You can think of it as a highly regulated top-tier financial vault, where safety and compliance are the highest principles.
As a certificate of deposit, you will receive a token named BBTC (or BBUSD). This certificate is very important; it is the "key" to all subsequent operations in the BounceBit world, representing your ownership of that portion of Bitcoin in the "vault."
By now, your first layer of earnings has quietly started. The original Bitcoin held in the "vault" is not idle. BounceBit will engage in low-risk arbitrage strategies within a compliant framework through integration with partners like Ceffu. This is your "original CeFi earnings," which has already begun to work for you before you perform any other operations.
Second stop: the "bridge" across dimensions - assets on-chain
Now, you hold the "key" in the form of BBTC. You can choose to let it quietly represent your CeFi earnings, but the real magic of BounceBit lies in the next step: bringing it into the broader DeFi world.
Through the built-in bridging function of the system, you can bridge your BBTC (a liquidity custody token, LCT) to BounceBit's PoS main chain. This process is like giving your assets a "pass" to officially step from the behind-the-scenes CeFi financial world onto the front stage of decentralized applications.
Third stop: the "engine" of dual acceleration - staking and on-chain ecology
Once your BBTC successfully lands on the BounceBit main chain, the real "parallel earnings" drama begins. Here, you have two core choices that can happen simultaneously:
Become a network guardian and earn staking rewards: You can stake your BBTC to validator nodes in the network. This action not only contributes to the security of the BounceBit chain, but you can also earn block rewards distributed by the network. This is your second layer of earnings - the "infrastructure earnings" from the PoS network.
What's more interesting is that when you stake BBTC, the system returns to you a certificate called stBBTC. This is a liquid staking derivative (LSD), meaning that the assets you staked are not "locked up." StBBTC itself is an asset that can flow freely within the BounceBit ecosystem.
Explore on-chain applications and uncover opportunity earnings: Whether it's your BBTC or the stBBTC obtained through staking, both can be invested in the rich and diverse decentralized applications on the BounceBit chain. For example, you can participate in the launch of new projects on Bounce Launchpad, or provide liquidity in decentralized exchanges to earn fees. The earnings from these activities are your third layer of earnings - the "opportunity earnings" from the DeFi ecosystem.
Do you see the wonderful aspects here?
Your same Bitcoin is currently creating value for you simultaneously on three different levels:
Its entity in the CeFi custody layer is generating original arbitrage profits.
Its certificate on the BounceBit chain (BBTC) is earning network node rewards through staking.
The derivative certificate (stBBTC) generated after it is staked, which can also seek new Alpha opportunities in various dApps.
This is the core of BounceBit's infrastructure design: it does not force users to make a single choice between CeFi and DeFi, but builds a sophisticated pipeline that allows the value of assets to be amplified in multiple layers in a parallel and lossless manner. It squeezes the potential of one Bitcoin to the extreme.
