Project Introduction:
BounceBit is a native BTC staking chain that ensures security through staking Bitcoin and BounceBit tokens. BounceBit is supported by CEFFU (formerly Binance Custody) and Mainnet Digital for secure storage of Bitcoin. The system's PoS mechanism introduces a dual-token staking system, leveraging the security of native BTC and full EVM compatibility.
Project Financing:
BounceBit announced at the end of February that it had completed a $6 million seed round of financing, with investors including Blockchain Capital, Breyer Capital, CMS Holdings, Bankless Ventures, NGC Ventures, Matrixport Ventures, DeFiance Capital, OKX Ventures, Bixin Ventures, and HTX Ventures. Individual investors include EigenLayer Chief Strategy Officer Calvin Liu and Anchorage Digital Co-founder & CEO Nathan McCauley.
Core Mechanism:
The core innovation of BounceBit is the BTC Restake mechanism. Simply put, assets on the BounceBit chain can be divided into three layers.
In the blockchain field, BounceBit has introduced an innovative technology, the BTC Restake mechanism, which opens up new avenues for the appreciation of Bitcoin assets. This mechanism encompasses three layers of asset management, providing Bitcoin holders with a multidimensional yield ecosystem.
First, we see the foundational layer of Bitcoin assets. Here, Bitcoin itself and tokens like BTCB and WBTC on the BNBChain can be stored in custodial services supported by Mainnet Digital and Ceffu's centralized finance (CeFi) offerings. The Mirror X technology provided by Ceffu ensures on-chain traceability of assets and regular financial audits to maintain system integrity and trust.
Additionally, the custodied Bitcoin can be converted into a wrapped version on the BounceBit chain. Here, Bitcoin becomes the so-called bounceBTC, which can be delegated to the network's node operators in exchange for stBTC certificates, or directly used for various applications.
The third layer is the restaking of stBTC. Users can restake stBTC on other SSCs, such as sidechains, bridges, and oracles, or directly use it for various applications in the ecosystem. The BounceBit chain is fully compatible with the Ethereum Virtual Machine (EVM) and Solidity programming language, allowing developers to easily migrate their projects to this new ecosystem.
Triple Yields:
From the above description, it can be realized that BounceBit is generating yields in parallel for CeFi and DeFi. Users can earn CeFi yields while utilizing LSD for BTC staking and on-chain mining, a process known as 'restaking' in Bitcoin. This ecosystem offers Bitcoin holders threefold yields: original CeFi yields, node operation rewards for staking BTC on the BounceBit chain, and opportunity yields from participating in on-chain applications and the Bounce Launchpad.
Dual PoS Mechanism:
BounceBit also employs a unique dual PoS (Proof of Stake) mechanism, emphasizing the importance of Bitcoin asset-driven infrastructure. Unlike relying on existing second-layer solutions, BounceBit operates as an independent PoS first-layer network, securing the network by having validators stake Bitcoin and BounceBit's native tokens. This dual-token PoS architecture not only enhances network security but also increases participant engagement.
BounceBit's PoS architecture contains 50 validators, evenly split into two parts: one for BTC stakers and the other for BounceBit token stakers. This dual-token system not only expands the stakeholder base but also weaves an additional layer of resilience and security into the network's consensus structure. Establishing a dual-token security system not only enhances the network but also increases the intrinsic value of BTC by enabling it to play an active role in network validation and yield generation.
Token Economics:
BounceBit's dual-token system is a key design feature. Through this system, the platform can effectively enhance network security, provide flexible staking mechanisms, and encourage user participation in its governance structure. The system consists of two tokens with different functions: BB and BBTC.
$BB Governance Token Main Use: To incentivize holders to actively participate in the maintenance and governance of the platform, ensuring the healthy development and long-term success of the network.
Network Governance: Can participate in platform governance decisions, including proposals and voting.
Staking Rewards: Can stake within the network to support its operations, with stakers receiving transaction fees and other rewards as incentives.
Security Assurance: Helps maintain network security, preventing double spending and other types of attacks.
The total supply of BounceBit tokens is 21 billion, distributed as follows:
Token Issuance Schedule:
Note: The BB token will continue to unlock after March 2033.
Project Outlook:
How to effectively utilize BTC is undoubtedly the focus of the BTC ecosystem, and different projects have presented different answers to this question. BounceBit's solution is straightforward, tightly focused on generating value around BTC yields. Moreover, within less than half a year of operation, it has become the first project in Binance's Megadrop series, showcasing the team's resource operation and integration capabilities. However, in the long run, whether its SSC can achieve good development will be the key to measuring BounceBit's true success; we will have to wait and see.
