Decentralization, why embrace centralization? What are the advantages of CeDeFi?
According to the official description: @BounceBit is a public chain that adopts a dual-token PoS model, based on BTC security and fully compatible with EVM. It aims to provide high-yield products and a wide range of financial application scenarios through the innovative model of CeDeFi (a combination of centralized and decentralized finance).
There are two pieces of information revealed here:
One is the PoS (Proof-of-Stake) mechanism, in which the dual tokens mentioned are $BTC $BB , which means that the BounceBit public chain directly empowers these two tokens.
One is CeDeFi (Centralized and Decentralized Finance), which means that its core business is financial services, not a general chain.
BounceBit’s PoS:
The staking mechanism of PoS needs some further explanation. BounceBit has three labels. In addition to Bitcoin Ecosystem and CeDeFi, there is also Restaking. Users can obtain corresponding Restaking assets $stBTC $stBB while participating in node staking and earning income by staking BTC and BB.
The core purpose of re-staking is to release the liquidity (interest) of the pledged assets and share the security, which is used by BounceBit to protect the security of its ecological basic services and DApps.
It can be said that BounceBit is full of financial attributes when designing the underlying public chain.
BounceBit’s CeDeFi:
CeDeFi is BounceBit’s core business.
The first and foremost benefits of DeFi are the pledged node income mentioned above, and participation in its ecosystem through re-staking assets, such as obtaining incentives by providing security, providing liquidity for mining, participating in project governance, etc.
CeFi is its advantage. BounceBit integrates Ceffu, Mainnet Digital and Fireblocks custody, and Mainnet Digital supervises and securely manages the custody service. When users store their assets in BounceBit, it will mirror the user's assets to the custodian, who will then conduct professional financial arbitrage (such as quantitative, hedging, funding fee arbitrage, etc.), so that users can gain benefits.
All of this is automated and hidden behind the scenes, with no additional user input required. However, when choosing a strategy, BounceBit still provides three options: automatic (strategy assigned by AI), fixed, and manual adjustment.
To sum it up in one sentence #BBCeDeFi , it is that it provides institutional benefits to ordinary non-professional users!
Extended content:
🔻 Happy’s understanding of Restaking:
https://www.binance.com/zh-CN/square/post/7459124480866
🔻 Happy wrote a research report when BounceBit launched Binance Megadrop:
https://www.binance.com/zh-CN/square/post/7849680940786
🔻 Happy's opinion on "Why weakening decentralization is a trend":
