CeDeFi Yield
Last updated
Last updated
The BounceBit CeDeFi system operates as an optional feature suite integrating regulated custody with decentralized yield generation. The architecture leverages Ceffu's custody infrastructure to enable delta-neutral trading strategies while maintaining asset security.
The system's foundation rests on two primary custody providers: Ceffu (formerly Binance Custody) and Mainnet Digital. These regulated entities implement a multi-party approval system for asset movements, ensuring comprehensive security through a robust regulatory compliance framework.
MirrorX serves as an off-exchange settlement layer, providing a critical bridge between custodial security and exchange functionality. The system mirrors assets on Binance Exchange without direct CEX exposure, effectively reducing counterparty risk through segregated custody while maintaining access to Binance's deep liquidity pools. This architecture enables continuous on-chain asset tracking and verification.
At its core, the system implements funding rate arbitrage through carefully structured delta-neutral trading strategies. Position sizing follows strict risk management parameters, with automated execution systems monitoring and capitalizing on cross-market arbitrage opportunities. This approach ensures consistent yield generation while maintaining strategic risk controls.
The current implementation extends across multiple blockchains, supporting major assets including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), BNB, and Solana (SOL). The system also integrates Real World Assets (RWAs) through tokens like USDY by Ondo Finance, providing exposure to traditional yield-generating assets. This cross-chain and cross-asset compatibility enables comprehensive yield generation opportunities while using these diverse assets as collateral within the system.
Security measures center on a regulated custodial framework requiring multi-party transaction approval. The system maintains segregated asset storage with continuous on-chain verification through MirrorX, creating multiple layers of security and transparency.
The risk management framework implements delta-neutral strategies with defined position size limitations. Automated risk controls monitor all operations, while regular audit procedures ensure system integrity. This comprehensive approach maintains equilibrium between centralized security measures and decentralized functionality, allowing users to access CEX-based yield strategies while their assets remain in regulated custody.
