Yield generation: A mix of CeFi and #defi
To achieve its vision of transforming Bitcoin from a dormant asset to a productive asset, BounceBit offers a wide range of yield sources that go beyond mere traditional storage.
Its hybrid framework (CeDeFi) allows users to benefit from returns from both financial worlds simultaneously, enhancing the capital efficiency of their assets.
Centralized finance yields (CeFi Yields) are the first layer of income. Users earn returns on idle Bitcoin through "delta-neutral funding rate arbitrage" strategies.
This is achieved through the "on-chain mirroring" technology that uses multi-party computation (MPC) provided by trusted entities like Ceffu. This technology allows for the execution of complex financial strategies without the need to transfer ownership of Bitcoin, while ensuring transparency through regular audits.
In parallel, users can achieve additional returns through decentralized finance (DeFi Rewards). The BounceBit chain offers a range of DeFi applications that include farming, liquidity provision, and participation in activities such as lending and arbitrage. This combination of relatively stable returns from CeFi and dynamic returns from DeFi gives investors flexibility and the opportunity to uniquely diversify their income sources.
BB Prime: Gateway to tokenized real-world assets (RWAs)
"BB Prime" represents a cornerstone in BounceBit's strategy to expand yield sources. This platform, specifically designed to offer "structured yields," directly links digital assets to traditional finance. This vision is embodied in the strategic partnership with Franklin Templeton, a giant in traditional asset management.
Under this partnership, the Franklin Templeton tokenized fund BENJI, backed by short-term U.S. Treasury bonds, is used as a core asset that provides a stable annual yield of around 4.5%. BB Prime combines this stable yield with decentralized trading strategies, creating a unique "yield-stacking" mechanism. This model allows investors to achieve returns from tokenized real-world assets (RWAs) alongside yields from DeFi activities, thereby reducing risk and enhancing income sustainability.
This focus on capital efficiency as a primary driver of asset flow is what distinguishes BounceBit.
By integrating stable yields from RWAs and variable yields from DeFi, the project addresses a major issue faced by institutional investors seeking reliable returns away from high volatility.
This multi-layered approach to yield positions BounceBit as a key player in the "hybrid decentralized finance" sector, attracting not only cryptocurrency enthusiasts but also traditional investors who value the transparency and legitimacy provided by these partnerships.
