Architecture
BounceBit Hybrid CeDeFi Yield Generation
BounceBit introduces a unique CeDeFi model that integrates CeFi and DeFi to optimize yield generation across the ecosystem. By minting BB-tokens on BounceBit Chain, the system allows users to leverage their assets for both centralized financial (CeFi) and decentralized finance (DeFi) strategies. This hybrid approach offers an efficient and automated way to generate yield while ensuring liquidity and security within the ecosystem.
Core Features
CeFi Custody for Asset Security: Deposited assets are transferred to CEFFU custody, a regulated entity ensuring compliance and security. From here, the assets are used to mint BB-tokens (e.g., BBTC, BBUSD, BBETH) on BounceBit Chain. These minted tokens represent the users’ assets, but the BB-tokens themselves are not held in CEFFU custody.
Minting of BB-Tokens: BB-tokens are minted by the system on BounceBit Chain for users based on the assets they deposit. These minted BB-tokens represent the user's participation in the ecosystem but are not automatically staked. The minted BB-tokens are held by the user in their wallet and can be used according to their preferences.
Optional Staking to the Farm Module: Users have the option to stake their minted BB-tokens into the Farm module on BounceBit Chain. Staking BB-tokens to the Farm module allows users to earn stBB rewards, but participation is optional. The rewards users receive in stBB are siphoned as a portion from the node staking rewards within the network, not from liquidity pools or other strategies.
Node Staking and Liquid Staking Module: Users can stake their BB Coin in the Liquid Staking Module on BounceBit Chain. The staked BB Coin is converted into stBB (Liquid Staking Derivative), allowing users to earn staking rewards while maintaining liquidity through stBB tokens. These stBB tokens can be used as part of the staking rewards derived from node participation in the BounceBit network.
No Bridging Required: There is no need for bridging tokens into the ecosystem. BB-tokens are minted directly on BounceBit Chain based on the user's initial deposit. The entire process is handled by the system, ensuring a seamless user experience without the need for manual token transfers.
Optimizing Asset Utilization Across CeFi and DeFi
BounceBit’s system allows users to transform traditionally passive assets into active, yield-generating instruments through its hybrid CeDeFi model. By minting BB-tokens on BounceBit Chain, assets such as Bitcoin, Ethereum, and stablecoins can be utilized across both CeFi and DeFi strategies for optimized yield generation.
CeFi Custody and Security: Assets are safely held in CEFFU custody, providing institutional-grade security and compliance, while still benefiting from the DeFi yield opportunities offered by BounceBit Chain.
Staking Rewards via Farm and Node Staking: Users can earn additional rewards by staking BB-tokens in the Farm module, with rewards derived from the network’s node staking operations. The system siphons a portion of the node staking rewards, distributing them to stBB holders as part of the yield generation process.
Liquid Staking with stBB: Through the Liquid Staking Module, users can stake BB Coin, earning rewards in stBB, which allows them to benefit from staking without losing liquidity. stBB functions as a Liquid Staking Derivative (LSD), providing staking rewards while ensuring active participation in the network.
A Seamless Hybrid Financial System
By integrating both CeFi custody and DeFi strategies, BB-tokens enable users to earn passive returns on their assets with minimal intervention. The system allows Bitcoin, Ethereum, and other underlying assets to be utilized in both centralized and decentralized finance environments, providing greater yield opportunities.
BounceBit’s model ensures that BB-tokens actively participate in the ecosystem, either through staking in the Farm module or through node staking rewards, thereby enhancing the Total Value Locked (TVL) in the BounceBit ecosystem. This hybrid approach offers an efficient, secure, and flexible way to manage and grow assets within the blockchain ecosystem.
CeFi Regulated Custody: The deposited assets are transferred to CEFFU custody, a regulated entity that ensures the highest standards of security and compliance, safeguarding the integrity of BounceBit’s TVL. For participating, you will receive BBTC/BBUSD as a voucher, acknowledging your contribution to the ecosystem’s liquidity.
Asset Management Diversification: With this commitment, you are granted access to a selection of asset management services, each with unique strategies and tailored incentive plans. You can choose to engage with these services and simultaneously bridge your BBTC/BBUSD to BounceBit's Layer 1. Details of the strategies and their perks can be found on the Asset Management page.
Token Bridging: Cross your Liquid Custody Tokens (LCT) tokens over to the BounceBit chain, integrating them into the broader BounceBit ecosystem.
Staking and Ecosystem Engagement: Finally, stake your BBTC tokens within the BounceBit network by allocating them to validator nodes and get stBBTC back as LSD, or use them to participate in on-chain ecosystem projects, thereby contributing to and benefiting from the network’s growth and success.
BounceBit’s infrastructure is meticulously architected to elevate Bitcoin’s status from a passive asset to an active, yield-generating instrument. By offering an integrated platform where Bitcoin holders can capitalize on the strengths of both CeFi and DeFi, BounceBit is pioneering a new chapter in asset optimization and financial innovation within the blockchain space.
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