Yield Structure

BounceBit CeDeFi is a multifaceted framework designed to maximize the potential yields for asset holders within its ecosystem. The system is divided into three primary yield streams, each offering unique opportunities for users to grow their Bitcoin assets. Below is an in-depth exploration of each yield stream based on the provided diagram:

Onchain Ecosystem DeFi Yield

The ecosystem DeFi yield stream within BounceBit capitalizes on the various DeFi applications and opportunities available within the BounceBit onchain ecosystem. Users can engage in activities such as liquidity provision, yield farming, and participating in new project launches or governance mechanisms. By actively participating in the BounceBit ecosystem, users can earn yield in the form of transaction fees, governance tokens, or other incentives designed to reward ecosystem engagement.

Infrastructure Yield: BounceBit Node Staking and PoS Mining

BounceBit’s infrastructure yield is anchored in its staking and mining framework. Users are incentivized to stake their Bitcoin alongside BounceBit tokens, thereby directly enhancing the chain’s security and stability. Participation in this process is twofold: validators operate nodes to maintain network integrity, while stakers contribute to the consensus via Proof of Stake. The tangible return on these critical activities comes in the form of staking rewards—yield that is accrued from the network’s transaction fees and the unlocking of BB coins through the PoS protocol. This model not only enables a sustainable ecosystem for yield accrual but also reinforces the foundational strength of the BounceBit network.

Onchain CeFi Yield from Ceffu’s MirrorX and Funding Rate Arbitrage

Within BounceBit’s ecosystem, the third avenue of yield generation is through a CeFi framework, woven into the platform’s architecture. User’s contributions to TVL are securely managed by Mainnet Digital’s regulated custodial services, assuring both compliance and safety. These assets are then mirrored via Ceffu’s MirrorX service, a key integration by BounceBit that maintains the onchain visibility and transparency of these assets.

Users can explore various asset management strategies offered in collaboration with established DeFi protocols, details of which are available on the Bitcoin Asset Management page. This includes participating in funding rate arbitrage opportunities on Binance and exploiting differences between futures and spot market prices. Additionally, BounceBit introduces over-collateralized lending and borrowing into its CeFi framework. Users can lend their BTC and other assets, securing attractive returns held up by substantial collateral, thereby minimizing risk. Simultaneously, borrowers gain access to capital without liquidating their BTC holdings, leveraging their assets to meet liquidity needs or investment opportunities.