Bitcoin re-pledging project BounceBit, with its native token $BB, has doubled in price within three days. The project aims to create income opportunities for Bitcoin holders through the provision of income products and the integration of CeDeFi services. This article introduces the income opportunities provided by BounceBit.
Table of Contents:
1. What is BounceBit?
2. Project Background
3. How to Participate in the Ecosystem
The native token $BB of the Bitcoin re-pledging project BounceBit has experienced a remarkable performance, with a 41% surge on the 25th followed by continuous gains for the next two days, reaching a high of $0.7868 on the 27th. The price doubling within three days is impressive.
At the time of reporting, the price is $0.6838, and the market capitalization has surpassed $280 million, with an Mcap/FDV ratio exceeding 19%, making it the highest among recently listed tokens on Binance. More details can be found in the report.
BounceBit:
BounceBit, the Bitcoin re-pledging project, aims to create income infrastructure for Bitcoin by providing institutional-level income products, re-pledging applications, and CeDeFi services, enabling Bitcoin holders to profit. The CeDeFi service is realized through the following methods:
CeFi: By collaborating with regulated custodial service providers such as Mainnet Digital and Ceffu, BounceBit allows users to earn real income from CeFi through liquidity custodian tokens (LCTs) designed by the protocol, such as fee arbitrage and fixed income.
DeFi: Users can utilize LCTs to engage in various DeFi operations on the BounceBit chain, such as pledging, re-pledging, and lending. Interestingly, the protocol has introduced BounceClub, which allows users to choose pre-built DeFi products from the BounceBit App Store to create their own DeFi space.
BounceBit Chain is a Layer1 network that adopts a dual-currency Proof-of-Stake (PoS) consensus mechanism, maintained by $BBTC and BounceBit’s native token $BB. It combines the security of Bitcoin and is fully compatible with EVM (Gas is paid in $BB).
Note: $BBTC is the liquidity custodian token (LCT) of BTC on the BounceBit chain.
BounceBit, created by Bounce Finance, which previously launched an auction service, later introduced the Bitcoin ecosystem IDO platform Bounce Auction, with its native token $Auction experiencing significant growth this year.
After completing a $6 million funding round in February, BounceBit received investment from Binance in April and became the first project to be listed on the Binance Megadrop platform.
BounceBit primarily consists of three elements: the BounceBit Chain as the settlement and execution layer, BounceClub as the DeFi product club, and the pledging and re-pledging services. These services can be accessed through the BounceBit Portal website, which is described below:
On the Deposit page, BounceBit supports the deposit of BTCB on the BNB chain and USDT on Ethereum. After depositing, USDT will be converted into its LCT form, $BBUSD, and BTC will be converted into $BBTC. The page also supports redemption, which requires visiting the Claim page after a 1-day interval.
On the Pledge page, $BBTC can be pledged and exchanged for stBBTC, earning a 5% APR. However, this is only supported for $BBTC on the BounceBit chain. If deposited from the aforementioned public chains, $BBTC needs to be bridged to the BounceBit chain on the Bridge page, with a gas cost of approximately 12U.
Additionally, $BB can be pledged and exchanged for stBB (in the form of liquidity staking token LSD), earning a 22% APR. Redemption can be done after a 1-day interval by visiting the Claim page.
On the Premium Yield Generation page, users can select a strategy and pledge. The minimum threshold is 0.1 $BBTC or 1000 $BBUSD, not suitable for small investors. In addition to the in-house chain, BNB and Ethereum are also supported. Moreover, stBBTC can participate in activities on the platform.
Redemption can be done after a 7-day interval by visiting the Claim page. The platform’s activities can be tracked on DefiLlama, with a current total value locked surpassing $140 million.
Recently, BounceBit has partnered with the synthetic USD protocol Ethena, allowing $BBUSD holders to enjoy an APY of up to 35.9% by pledging and earn 5x sats. Details will be disclosed this week, and whether it will accelerate the expansion of USDe is worth paying attention to, as its market capitalization has already approached $2.8 billion.
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