@BounceBit
BTC Restaking:
Concept Origin: The concept of 'Restaking' was initially proposed by EigenLayer in the Ethereum ecosystem, referring to the ability for users to take assets (ETH) that are already staked in one protocol (like the Ethereum consensus layer) and restake them to other services that require security (known as Active Validation Services, AVS) to earn additional yields, while 'sharing' the underlying protocol's security with upper-layer applications.
Application of BounceBit: BounceBit introduces this concept into the BTC ecosystem.
Step 1: Stake BTC: Users stake BTC into the BounceBit network. These staked BTC form the foundation of the network's security and value.
Step 2: Generate Liquid Staking Token (LST): The staked BTC is typically converted into a type of liquid staking token (e.g., BBTC). Holding BBTC represents the user's ownership of the underlying staked BTC and its yield rights, while BBTC can circulate and be used freely within the BounceBit ecosystem.
Step 3: Restake BBTC: Users can restake their held BBTC (representing the staked BTC) into other services or applications on the BounceBit chain. These services may include:
Providing security for BounceBit's own PoS consensus mechanism (validator node staking).
