How Bitcoin holders can earn yield through a hybrid CeFi + DeFi framework
What is BounceBit?
BounceBit is a blockchain that allows Bitcoin holders to restake their BTC and earn yield from multiple sources. It combines centralized finance (CeFi) and decentralized finance (DeFi) — a model often called CeDeFi — to offer users the best of both worlds: secure, regulated yield from traditional sources, plus the flexibility and composability of DeFi.
Think of it as turning idle Bitcoin into an active asset that can earn rewards while staying liquid and usable in on-chain applications.
Why BounceBit Matters
Bitcoin is often called “digital gold,” but most BTC just sits in wallets without earning any yield. BounceBit solves this problem by:
Allowing BTC holders to stake and earn returns
Using liquid staking derivatives, so staked BTC can still be used in DeFi
Combining institutional-grade yield sources with DeFi strategies for higher returns
Maintaining security and transparency through blockchain governance
In short: it gives BTC holders a way to grow their holdings without losing flexibility or control.
How BounceBit Works
BTC Conversion: Users deposit BTC and receive a protocol-native token (like BBTC) that represents their staked BTC.
Restaking & Yield Generation: This token can be used in multiple ways — earning validator rewards, participating in liquidity pools, or generating yield from institutional DeFi strategies.
Liquid Staking Derivatives (LSDs): The staked BTC token is tradable and can be used as collateral or in other DeFi protocols, creating additional opportunities to earn.
CeDeFi Framework: BounceBit mixes centralized yield (from custodians and regulated funds) with DeFi farming and liquidity strategies to maximize returns.
EVM Compatibility: Developers can build smart contracts and dApps using familiar Ethereum tooling.
This combination allows users to earn yield while still keeping their BTC active in the crypto ecosystem.
CeDeFi — The Best of Both Worlds
BounceBit’s CeDeFi model bridges traditional finance and DeFi:
CeFi side: Institutional-grade custodians and tokenized money-market funds provide secure, regulated yield.
DeFi side: Users can participate in liquidity pools, lending, and yield farming for additional returns.
By blending these two, BounceBit unlocks new yield opportunities for BTC holders while keeping assets liquid and composable.
Who Can Benefit
Individual BTC holders: Earn passive yield without selling or losing access to BTC.
DeFi users: Use liquid staking derivatives in other protocols for layered returns.
Institutions: Integrate tokenized real-world assets into on-chain yield strategies for more efficient capital use.
Developers: Build dApps or financial products on an EVM-compatible chain using BBTC and LSDs.
Tokenomics & Incentives
Native token (BB): Used for governance, staking, and rewards.
BTC representation & LSDs (BBTC / stBBTC): BTC holders earn validator rewards, CeFi yields, and DeFi farming rewards.
Layered incentives: Returns come from a mix of staking, partner yields, and protocol incentives.
This design encourages both long-term participation and active engagement in DeFi strategies.
Real-World Use Cases
Earn passive BTC yield: Stake BTC and get a combination of protocol rewards and CeFi/DeFi yields.
Composable DeFi exposure: Use staked BTC derivatives in lending, AMMs, or derivatives protocols.
Institutional yield: Tokenized treasuries and money-market products can be integrated into structured on-chain strategies.
Cross-chain liquidity: EVM compatibility allows BBTC and derivatives to be used across other chains.
Security & Risk Considerations
Custody partnerships: BTC is often held with regulated custodians, balancing security and compliance.
Smart contract & bridge risk: Composability and cross-chain flows increase attack surface — audits and best practices are essential.
Economic complexity: Stacked yields and layered strategies carry risk; users should understand how rewards are generated.
Regulatory landscape: Tokenized assets and institutional integrations may face future regulatory scrutiny.
Getting Started
Deposit BTC and receive BBTC or stBBTC.
Stake or use your tokens in liquidity pools, lending protocols, or other DeFi strategies.
Track rewards and participate in governance using the BB token.
Developers can integrate BBTC/stBBTC into dApps via EVM-compatible smart contracts.
Why BounceBit is Exciting
BounceBit makes Bitcoin an active, yield-generating asset while keeping it liquid and composable in the DeFi ecosystem. It blends the security and yield of CeFi with the flexibility and transparency of DeFi, giving BTC holders new ways to grow their holdings.
In essence, BounceBit turns your idle BTC into a working asset in the crypto economy — safely, efficiently, and transparently.