Introduction

An overview of BounceBit's CeDeFi architecture.

BounceBit links regulated custody with onchain settlement. Underlying assets are safeguarded by institutional custodians (e.g., CEFFU). Onchain, positions are represented in a standardized BB-Token format so they can move through DEXs, money markets, perps, and incentive programs without bespoke wrappers.

Layers at a glance

At the edge, approved gateways connect custody to the chain, handling mint/burn against verified reserves. The strategy layer issues standardized position tokens to subscribers, while the underlying assets are utilized as collateral for delta-neutral basis trading strategies. Yield is embedded within the BB-Tokens and rebases weekly. Network security is provided separately: stake BB to receive stBB (liquid staking derivative) with an unbonding period on exit. Farms can add program incentives on top of strategy positions without changing redemption rights.

Asset flow

Users deposit through an approved pathway; the custodian records reserves. A strategy subscription mints the onchain position token to the user. That position can be used across integrated apps while accruals are reflected in token balances. When the user redeems, the token is burned and the underlying is released through the same custody route.

Where yield comes from

• Onchain strategies: trading fees, lending/borrowing spreads, funding and basis capture, and other structured mechanisms settled programmatically on the chain.

• Venue strategies: basis, funding, and over-collateralized lending executed at regulated venues with off-exchange settlement; results are mirrored to holders on-chain.

• Network security: validator rewards from BB → stBB staking (subject to commissions and slashing rules).

Security and risk posture

Custody remains under regulated standards (e.g., CEFFU) with clear ingress/egress procedures. Gateways enforce controlled mint/burn; transfers on-chain are permissionless unless a pause is invoked for incident response. Risk spans three domains: custody/venue (operational and counterparty), gateway/bridge (mint/burn correctness and connectivity), and smart-contract (strategy, farm, and settlement contracts). Slashing risk applies only to stBB (liquid staking). Pricing and collateralization are sensitive to oracle and liquidity conditions.

Custody stays institutional; settlement stays onchain. Users subscribe, receive a portable position token, and can compose it across applications. Redemption always routes back through custody. Liquid staking (stBB) is separate from strategy positions; Farms are an additive incentives layer, not a custody or security mechanism.