BounceBit Prime and its Restaking Mechanism Analysis is a major innovation in the DeFi space, bringing institutional-grade on-chain returns to users through the restaking mechanism. Restaking is a mechanism that allows staked assets (such as Bitcoin) to be restaked across multiple networks or protocols to earn additional returns without unbinding the original stake. BounceBit Prime collaborates with custodians like BlackRock and Franklin Templeton to convert Bitcoin into yield-generating assets. Specifically, BounceBit's restaking mechanism is based on its dual-token PoS (Proof of Stake) architecture, combining and BBTC (the Bitcoin token on the BounceBit chain). Users can participate through the following steps:

  1. Staking and Tokenization: Users deposit BTC into the BounceBit platform, which, in collaboration with compliant custodians like Ceffu and Mainnet Digital, generates a 1:1 BBTC (Liquid Custody Token, LCT). These tokens can circulate freely on-chain while the original assets remain secure in custody.

  2. Dual Token Staking: On the BounceBit chain, validators must stake both BBTC and to ensure network security. Users can delegate BBTC to validators to receive stBBTC (liquid staking derivatives) and earn rewards through node staking.

  3. Restaking Earnings: stBBTC can be further restaked in Shared Security Clients (SSCs, such as cross-chain bridges, oracles, etc.) to generate additional earnings. Users can also earn returns through DeFi activities (such as liquidity mining, lending) or advanced yield strategies (such as funding rate arbitrage).

  4. Compliance and RWA Integration: Through the tokenization of Real World Assets (RWA), such as financial products in collaboration with BlackRock, users can obtain market-neutral returns in a compliant manner, reducing price volatility risk.

This mechanism combines the security of CeFi with the flexibility of DeFi, significantly enhancing capital efficiency. Users can earn multiple returns in both on-chain and off-chain markets through restaking without unlocking their originally staked BTC. BounceBit’s EVM compatibility further allows developers to easily build dApps and expand the ecosystem.