🏦BounceBit CeFi + DeFi

BounceBit CeFi + DeFi Architecture

System Overview

BounceBit implements a hybrid financial infrastructure that combines CeFi custody with DeFi yield generation. The system enables parallel yield streams through both centralized and decentralized mechanisms, utilizing Bitcoin as the primary asset.

Core Components

Asset Flow Process

1. Initial Custody (CeFi Layer)

   • Assets transfer to Mainnet Digital's regulated custody

   • Users receive BBTC/BBUSD vouchers as custody tokens

   • Custody maintains regulatory compliance standards

2. Asset Management Layer

   • Access to multiple management strategies

   • Integration with established DeFi protocols

   • Bridge functionality for BBTC/BBUSD to Layer 1

3. Chain Integration

   • LCT (Liquid Custody Tokens) bridge to BounceBit chain

   • Validator node staking with stBBTC issuance

   • Ecosystem project participation options

Yield Generation Mechanisms

1. DeFi Ecosystem Yield

• Liquidity provision

• Yield farming protocols

• Project launch participation

• Governance incentives

2. Infrastructure Yield

• Node operation rewards

• PoS mining returns

• Transaction fee distribution

• BB coin unlocking schedule

3. CeFi Integration Yield

• Ceffu MirrorX implementation

• Funding rate arbitrage (Binance integration)

• Over-collateralized lending

• Futures-spot price differential strategies

Technical Implementation

Asset Management Structure

• Regulated custody base layer

• Bridge protocols for cross-chain movement

• Validator node infrastructure

• LSD (Liquid Staking Derivatives) mechanics

Risk Management

• Over-collateralization requirements

• Regulated custody standards

• Multiple yield stream diversification

• Transparent on-chain tracking