Before I carefully studied this project, I also thought it was just an ordinary VC coin. However, after understanding it, I decisively bought in. This coin will definitely not perform poorly in this round of the bull market; it is a typical undervalued value project.
Researching a DEFI project,@BounceBit What I like to see most is whether it can bring actual value to users, such as whether there are real profit-generating businesses, whether the ceiling of the track is high enough, and most importantly, whether the safety performance can be guaranteed. Fortunately, these three points happen to be met.$BB All can be satisfied.
1️⃣, Real returns
There’s a picture on the official website that explains very well what this project is doing. The original image was in English, which is difficult for everyone to understand, so I localized it a bit. It’s all in layman's terms that you can definitely understand.
1.1) The first business: Funding rate arbitrage
Holding spot is equivalent to going long with one times leverage, while they will short with one times leverage. If the funding rate is positive, then the long position gives the short position money every 8 hours, which means one times long and one times short effectively offset each other, continuously consuming the funding rate from the long position.
1.2) The second business: Liquidity staking
It is very simple; it's like depositing money, and it will give you a small receipt as proof. Then, with the receipt, you can earn interest, and this receipt can be sold at any time to realize value. By the way, the source of interest is the bunch of businesses inside the big black circle in the middle.
1.3) The third business: Re-staking
The re-staking that exploded on Ethereum in the first half of the year should have been heard of, right? They have also launched products that can be nested, but personally, I don't recommend everyone to do this, because the DEFI development on BTC is indeed much later than on Ethereum, and this area is still not mature. However, having this idea is quite impressive.
Looking at the picture and my explanation, isn't it clear at a glance?
It draws on the business logic of three high-quality DEFI projects and then combines them together. It takes those scenarios on the $ETH chain and moves them to $BTC . This means it is doing everything where CeFi and DeFi can make money. This is its most impressive aspect, and calling it the most powerful DEFI project on BTC is not an exaggeration. Apart from wealth management, many friends should have used its practical products during the inscription boom last year.
2️⃣, Ceiling
Taking the arbitrage of the exchange to eat the funding rate as an example, the contract size of $ETH is 10 billion US dollars year-round, while $BTC is 30 billion. This means that the contract holding volume of Bitcoin is larger, which naturally means a higher ceiling. Especially since we have recently entered a bull market, the funding rate is positive in most cases, making the arbitrage logic completely feasible.
Moreover, I heard that the project team has a good relationship with Binance, and An An's influence is the largest in the industry. Bouncebit earns stable returns through arbitrage, while Binance can maintain the price difference between $BTC contracts and spot prices through Bouncebit, creating a strong partnership with many benefits.
Finally, although DEFI on the BTC chain is currently not mature, it just provides Bouncebit with an excellent scenario, with less competitive pressure than on the Ethereum chain. Its future potential is very imaginative.
2️⃣, Security
This is also the aspect I pay the most attention to because whether the funds can be amplified ultimately depends on how safe the project is. However, DEFI projects can never be absolutely safe, and everyone should understand that.
CeFi business: low risk
Bouncebit does not independently execute these quantitative and arbitrage operations. The actual execution is done by well-known professional institutions in the industry, which have a good reputation and are quite professional. Moreover, there is deep cooperation with Binance; previously, Magedrop allocated 8% of the share, making it difficult to do better in this business.
DEFI business: low risk
BounceBit has introduced a dual-token PoS mechanism, which can enhance network security and participant engagement. The mechanism is not particularly new, but whether on Ethereum or BTC, it is generally similar, so there is no need to worry too much.
Re-staking business: high risk
Although the story is great, from the user's perspective, DEFI on BTC is still not as mature as Ethereum. Being able to make more money is certainly good, but having too many nested structures is not a good habit.
Summary:
Seeing this, I believe friends should understand why I say this project is quite excellent. The DEFI business on the BTC chain is a leader, and it has deep cooperation with Binance. Moreover, the idea is really great, merging the three most powerful financial products on Ethereum together. Now that the BTC market is rising, the funding rate will definitely yield more returns.
$ENA has doubled; how far can $BB be?
A tenfold increase in six months is really not high for it.
For reference only, not investment advice 🤝
