How to hold Bitcoin long-term while enjoying asset yield generation?
Among various solutions, BounceBit ($BB ) stands out as an innovative Bitcoin re-staking chain, providing Bitcoin holders with new income channels and holding incentives through its unique product design philosophy and CeFi+DeFi product model.
BounceBit: The Rise of the Bitcoin Re-staking Chain
BounceBit is a BTC re-staking chain specifically designed for Bitcoin, building a comprehensive BTC re-staking infrastructure that provides a solid foundational layer for various re-staking products. By combining centralized custody and sidechain technology, BounceBit aims to address a series of issues faced in the Bitcoin ecosystem, such as asset yield generation, network confirmation delays, lack of smart contracts, and high gas fees.
BounceBit employs a unique hybrid PoS mechanism for validation and resolves the trust issues of underlying BTC assets through multi-party custody. Users can deposit their on-chain Bitcoin assets into the BounceBit protocol, which are overseen by an MPC wallet jointly managed by BounceBit, CEFFU, and Mainnet Digital, ensuring the security of user assets.
In terms of income sources, BounceBit provides users with a diversified approach to asset yield. Users can earn asset returns through participation in BounceBit's staking and on-chain financial interactions via multiple channels. These returns include, but are not limited to, node staking rewards, re-staking yields, and earnings from participating in various low-risk arbitrage strategies on centralized exchanges.
Unique product design philosophy
BounceBit ($BB )'s product design philosophy is very clever, combining the advantages of centralized custody and sidechain technology to attempt to overcome the consensus and trust issues of sidechains. In this framework, nodes secure the chain by staking BTC and BounceBit tokens (BB). The connection between BounceBit and BTC is established at the asset level rather than the protocol level, allowing BounceBit to maintain a link with BTC assets while achieving better processing speed and more functionalities.
By introducing a centralized custody mechanism, BounceBit addresses the trust issues commonly faced by sidechains. Additionally, by integrating DeFi applications, BounceBit further revitalizes the BTC ecosystem, enabling BTC to be utilized in more scenarios such as DeFi, gaming, and social interactions. This hybrid model of centralization and decentralization brings new solutions to the Bitcoin ecosystem and offers users more income opportunities.
Investment choices of HTX Ventures
As one of BounceBit's main investors, HTX Ventures is confident in BounceBit's prospects. HTX Ventures believes that BounceBit can effectively meet the actual market demands through its centralized custody model built on standard sidechains. BounceBit's core objective is to address issues such as generating interest on Bitcoin assets, inefficient utilization of idle BTC, lack of innovation, and high gas fees, providing Bitcoin holders with diversified income channels.
In the current market environment, Layer2 and sidechain technologies are the two main solutions to enhance the BTC ecosystem. However, Layer2 mainly focuses on improving transaction speed, while there are limitations in deploying smart contracts; sidechains, although faster, face trust and consensus issues. BounceBit attempts to overcome these challenges by combining centralized custody and sidechain technology, bringing new development opportunities to the Bitcoin ecosystem.
Looking Ahead: Exploring Diverse Yield in the Bitcoin Ecosystem
As global institutions and individuals continue to increase their BTC holdings, the price of BTC is expected to rise further. Additionally, during this market cycle, niche sectors such as BTC inscriptions and BTC expansion have also garnered significant attention. These developments have filled the market with anticipation for the future of the Bitcoin ecosystem.
As an innovative CeFi+DeFi product, BounceBit combines centralized and decentralized mechanisms to provide Bitcoin holders with new income channels and holding incentives. By introducing a third-party custody mechanism to resolve trust issues and generating new EVM on-chain assets to activate the financial attributes of native assets, BounceBit may become a new solution for the Bitcoin ecosystem.
Looking forward, with the continuous technical developments and breakthroughs in the BTC ecosystem and the emergence of various ecological projects, the crypto market is set to face more opportunities and challenges. In this phase, BounceBit's CeFi+DeFi mechanism has good TVL growth potential and is expected to explore diversified yields for BTC ecological assets. For Bitcoin holders, BounceBit not only offers a new income channel but also serves as a great tool for them to hold Bitcoin long-term and enjoy the development of the Bitcoin ecosystem. Let's look forward to more surprises that BounceBit will bring to the Bitcoin ecosystem!
