1. What is CeDeFi?
CeDeFi is a combination of CeFi and DeFi, merging the best features and attributes of both financial systems.
Currently, financial systems have been divided into centralized finance (CeFi) and decentralized finance (DeFi). CeFi is a traditional financial system, supported by banks, while DeFi relies on cryptocurrencies and smart contracts.
However, a new system, 'CeDeFi', a combination of centralized and decentralized finance, has emerged and is attracting attention. So what is CeDeFi and how does it work?
CeDeFi offers features similar to DeFi protocols while being centralized, allowing people to access DeFi products such as decentralized exchanges (DEX), liquidity aggregation tools, yield farming tools, and lending protocols — but still leverage the advantages of the CeFi system.
Unlike DeFi, which requires no permission and is available for anyone to use, CeDeFi projects tend to lean more toward centralization. They are often managed by one or a small group of entities, which allows them to have more control (similar to CeFi).
Overall, the CeDeFi ecosystem, which is a combination of centralized and decentralized models, aims to improve the traditional cryptocurrency model to allow for faster transactions, improved security, larger transaction volumes, and relatively lower fees compared to traditional systems.
2. The potential of Bounce Bit
The project also stated that the features of BounceBit Chain focus on managing CeDeFi assets. The underlying infrastructure communicates and corresponds to asset management and custody. Accordingly, the chain will receive significant upgrades in usability and performance to optimize the EVM execution layer to improve network node performance.
Moreover, the network also develops a shared security customer module (SSC) to allow other projects to leverage the liquidity of restaking BounceBit BTC, build a new Mempool module for higher transaction throughput, and restructure the communication layer between EVM and Cosmos SDK.
According to the project's blog, BounceBit Chain serves three main purposes:
1/ Resolving and storing CeDeFi records: The network ensures transparent and efficient resolution as well as on-chain record keeping, providing a secure and immutable ledger.
2/ Dual PoS token structure: The structure allows users to earn staking rewards in the project's token BB by contributing to enhancing cybersecurity through BBTC or BB tokens.
3/ Profit potential: The on-chain ecosystem offers diverse profit opportunities. Users can engage in various activities such as swapping, issuing meme tokens, and participating in DeFi derivative trading, thereby generating additional income.
In addition, the liquidity custody token (Liquid Custody Token - LCT) is a key component of BounceBit's infrastructure. Accordingly, all LCTs are backed 1:1 by equivalent assets held in custody. Custodial rights represent a pool of assets in a passive form until the LCT is reclaimed.
The asset group allows users to earn interest from CeFi while using LCT to participate in Bitcoin staking and on-chain farming. Bitcoin holders will receive three profits, including CeFi profits from the interest rate spread for over-collateralized loans and borrowings, Bitcoin staking rewards on BounceBit, and opportunity profits generated from taking risks in the BounceBit ecosystem.
3. Predict the price of $BB token by the end of 2024 and early 2025
