Architecture
This document describes the end‑to‑end architecture of the BounceBit Protocol: the chain itself and the surrounding components that make asset‑driven finance work on one ledger.
BounceBit is an asset‑driven protocol: custody, execution, and onchain accounting are separated but coordinated so capital can live on one ledger and stay productive everywhere.
TL;DR
One ledger: BounceBit Chain (EVM, PoS) is the settlement layer for all protocol activity.
Represented assets: External assets are reflected as BB‑Tokens minted on BounceBit Chain (no bridges). Underlyings for V3 are custodied at CEFFU.
Native security & rewards: BB is staked via the Liquid Staking Module (LSM) to mint stBB. A portion of node‑staking rewards funds protocol incentives.
Optional incentives: Eligible BB‑Tokens can optionally stake into the Farm to earn stBB‑denominated rewards.
Institutional CeDeFi: Prime sources tokenized cash equivalents (e.g., Benji, BUIDL via Securitize) with custody at Standard Chartered and collateral mirrored to OKX for execution.
Architecture at a Glance
Settlement
Executes and records all state
BounceBit Chain (EVM PoS)
Security
Secures consensus; issues liquid staking
BB, LSM → stBB
Asset Representation
Reflects external assets natively on chain
BB‑Tokens (minted on BounceBit; underlyings at CEFFU for V3)
Incentives
Aligns usage with security
Farm (rewards siphoned from node‑staking; paid in stBB)
CeDeFi Strategies
Institutional cash‑equivalent rails
Prime (custody at Standard Chartered, collateral mirroring to OKX; sourcing via Securitize)
Applications
Markets and products that compose the above
Perps, swaps, money markets, structured yield
User Journeys
A) Bring assets on
You allocate external assets to an approved custodian program. The protocol mints BB‑Tokens for you on BounceBit Chain—a bridgeless representation independent of the asset’s origin network. You hold BB‑Tokens in your wallet; the underlyings stay with the custodian (e.g., CEFFU for V3).
Note: BB‑Tokens themselves are not in CEFFU custody; only their underlying assets are.
B) Farm (optional)
If you opt in, you can stake eligible BB‑Tokens into the Farm to earn rewards in stBB. These rewards come from a siphoned portion of node‑staking yield, not from liquidity pool emissions.
C) Use in apps
Because everything settles on one ledger, your BB‑Tokens and stBB flow through perps, swaps, money markets, and structured products with fewer hops and lower operational friction.
D) Redeem
Burn your BB‑Tokens on BounceBit Chain and receive the underlying assets from custody according to the relevant product’s rules and schedule.
Component Deep Dives
1) BounceBit Chain (Settlement)
What it is. An EVM‑compatible PoS Layer 1 that provides deterministic accounting for positions, collateral, and rewards.
Why it matters. A single state machine removes reconciliation overhead between CeFi and DeFi rails; capital can be reused instantly across products.
How it works. Validators stake BB and can be slashed for misbehavior. The Liquid Staking Module (LSM) mints stBB, a freely composable LSD used across DeFi and as the reward unit for the Farm.
2) BB‑Tokens (Asset Representation)
What they are. On‑chain vouchers representing external assets (BTC, ETH, stablecoins, other supported assets).
Why it matters. They create a bridgeless path from custody to on‑chain utility while preserving clean separation of roles.
Issuance. After assets are placed with an approved custodian, the protocol mints BB‑Tokens on BounceBit Chain for the user. Tokens live in the user’s wallet; underlyings (V3) live at CEFFU.
Redemption. Burn BB‑Tokens on chain; custodian releases the corresponding underlying per program rules.
Not a bridge: Supply discipline is enforced by on‑chain mint/burn controllers mapped to custodial attestations rather than cross‑chain lock/unlock mechanics.
3) Farm (Protocol Incentives)
Purpose. Align protocol usage with network security.
Mechanics. Users opt in to stake eligible BB‑Tokens. Rewards are paid in stBB and sourced from a programmatic siphon of node‑staking rewards. No LP emissions; incentives are bounded by validator economics.
Result. A sustainable incentive loop that rewards productive collateral without distorting markets.
4) Prime (Institutional CeDeFi)
Role. Access to tokenized cash equivalents and institutional execution while keeping custody segregated.
Instruments. Sourced via Securitize (e.g., Franklin Templeton’s Benji, BlackRock’s BUIDL).
Custody & execution separation. Assets are held at Standard Chartered (G‑SIB). Collateral is mirrored to OKX for venue execution. Custody remains with the bank; collateral moves programmatically for fills.
Accounting. Exposures are reflected on BounceBit Chain so they can compose with BB‑Tokens and stBB across apps.
Benefits. Reduced venue risk, audit‑ready reporting, and 24/7 collateral mobility with eligibility controls when required.
Governance & Upgrades
Parameters: Emission shares, Farm eligibility, supported underlyings are managed on chain.
Process: Testnet → canary → mainnet, with public notices and timelocks where applicable.
Glossary
BB: Native token used for fees and staking.
stBB: Liquid staking derivative of BB issued by the LSM; reward unit for Farm.
BB‑Tokens: On‑chain vouchers for assets held with approved custodians; minted on BounceBit Chain; underlyings (V3) at CEFFU.
Farm: Optional staking of eligible BB‑Tokens to earn stBB rewards sourced from node‑staking.
Prime: Institutional CeDeFi layer with custody at Standard Chartered and collateral mirroring to OKX; instruments sourced via Securitize.
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