What Is BounceBit?
@BounceBit is the first native BTC restaking chain—a Layer 1 PoS blockchain designed exclusively for Bitcoin. It allows holders to restake their BTC, unlocking new revenue paths while maintaining security and ushering BTC into DeFi and real-world asset channels. Its architecture blends institutional-grade finance with decentralized innovation—a true CeDeFi system.
At its core is a dual-token PoS model: users stake both Bitcoin (wrapped as BBTC) and BounceBit’s native token (BB) to secure the network, participate in governance, and farm yields.
CeDeFi: The Hybrid Financial Model
BounceBit’s standout is its CeDeFi framework, merging the best of both worlds:
CeFi elements: Custody by regulated institutions (like CEFFU and Mainnet Digital).
DeFi elements: Smart contracts, transparency, and open yield mechanisms.
This allows BTC holders to earn while keeping assets secure and visible on-chain.
How It Works: Restaking Bitcoin
Deposit & Wrap BTC: BTC is transferred to compliant custodians in exchange for wrapped tokens (e.g., BTCB, BBTC).
Stake on BounceBit Chain: Users stake BBTC and $BB with validators, securing the network via dual-token PoS. In return, they earn staking rewards and receive liquid restaking tokens (LCTs).
Earn Layered Yield: Users gain from staking returns, DeFi farming, liquidity provision, plus access to tokenized real-world asset (RWA) yields via BounceBit Prime.
BounceBit Prime: Institutional Yields for All
A standout feature—BounceBit Prime—brings institutional-grade, tokenized RWA yields on-chain, thanks to partnerships with financial heavyweights such as BlackRock and Franklin Templeton. What was once reserved for institutional investors is now available to retail users.
Ecosystem & Developer Layer
@BounceBit is fully EVM-compatible, enabling seamless migration of Ethereum dApps to its platform. It includes features like BounceClub—a Web3 environment where users can launch custom apps and participate in an on-chain community using customizable dashboards.
Comparison: Centralized vs Decentralized Restaking
There are two paths to BTC restaking:
Centralized (BounceBit approach): Trusted custodians mirror BTC into restakable forms. Convenient, but depends on delegation trust.
Decentralized (e.g., Babylon): BTC is staked via self-custodial vaults on Bitcoin’s native chain; more secure control but complex and potential slashing risks.
BounceBit trades some decentralization for user-friendliness and institutional-level integration.
Real-World Momentum & Roadmap
TVL Surge: BounceBit hit over $1 billion in total value locked (TVL) shortly after its mainnet launch in May 2024.
Shared Security Module: Roadmap includes allowing third-party protocols to utilize BounceBit’s staking liquidity, enhancing network utility.
Focus on improved EVM performance, higher throughput, and better interoperability (e.g., via Cosmos SDK).
Token (BB): Powering the Ecosystem
The BB token lies at the heart of the network:
Powers staking, governance, and yield rewards.
Gains value as more BTC is restaked and institutional products flow in.
Current stats: priced around $0.1486, with a market cap of ~$110M and circulating supply of ~742M BB.
Key Advantages at a Glance
Activates dormant BTC to earn yield—not just store value.
Institution-grade access—Prime opens tokenized RWAs to everyone.
Security-first approach with regulated custody and smart contracts.
Developer-ready via EVM compatibility and modular infrastructure.
Scalable growth through roadmap expansion and interoperability.
Consider the Risks
Custodial risk: BTC is managed by third parties—central point of failure.
Complex architecture involving dual tokens, restaking loops, custody layers.
Competition from modular/restaking pioneers like EigenLayer or Babylon.
Regulatory concerns, especially due to institutional partnerships and custody models.
