This article will take you to understand the Bitcoin staking L1 project BounceBit, which is currently building the infrastructure for BTC restaking. BounceBit is a Bitcoin staking Layer1 project that combines the concepts of CeFi and DeFi, leveraging the advantages of both. It is built on the CeFi model and allows Bitcoin to be used in DeFi.
BounceBit adopts a transparent CeFi model, supported by Ceffu’s MirrorX technology and Mainnet Digital’s custody services. Users can securely access a large amount of liquidity on exchanges through Ceffu’s MirrorX over-the-counter settlement solution and earn profits through diversified trading strategies. At the same time, funds can be securely stored in the MPC wallet.
BounceBit collaborates with multiple experienced asset management companies with a long track record of positive returns for trading through MirrorX. All asset management companies use fund rate arbitrage as their trading strategy.
Since the launch of Premium Yield Generation on February 5th, the platform has accumulated a total profit of 48.28 BTC and over 500,000 USDT. The average annualized rate of return for BTC is 15.9%, and for USDT it is 46.29%.
What is BounceBit?
BounceBit is a blockchain that showcases the restaking products in the BounceBit ecosystem. It is a Layer1 based on the PoS mechanism, where validators stake BTC and the native BounceBit token provides protection. This dual-token system utilizes the native security of Bitcoin and is fully compatible with EVM, cross-chain bridges, and oracle ecosystems, with protection provided by restaked BTC.
Through the innovative CeDeFi framework, BounceBit allows BTC holders to earn profits in multiple networks.
CeFi on the BounceBit platform allows users to build assets on it. This is where BounceBTC (BBTC) comes into play, which is wrapped BTC supported by various types of custodied BTC as collateral. BBTC can be used for staking, restaking, and common DeFi activities on the BounceBit chain.
Users can think of BBTC as certificates representing custodied funds. Assets locked in CeFi yield generation are not only secure but can also earn additional profits from DeFi on BounceBit L1. Users can enjoy a lower cost, higher security, better accessibility, faster speed, and lower fees here.
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