What does BounceBit do?
BounceBit is committed to providing BTC Restaking solutions and providing a base layer for different Restaking products. It adopts a dual-currency hybrid POS mechanism. The block network is jointly maintained by $BBTC and BounceBit's native token $BB, combining the security of Bitcoin and being fully compatible with EVM. #BBCeDeFi
What are the advantages of BounceBit? $BB
1. CeFi+DeFi parallel income mechanism BounceBit combines the higher profits of CeFi (centralized finance) with the on-chain transparency and security of DeFi (decentralized finance). CeDeFi is both BounceBit's innovation and core competitive advantage. BounceBit ensures that its platform is technically compatible with other major blockchain protocols (such as Ethereum, Binance Smart Chain, etc.). Including supporting standardized token protocols (such as ERC-20), so that these tokens can be issued and traded on different chains. Users can deposit their own crypto assets such as BTCB and USDT into the BounceBit protocol, and after depositing, they will receive corresponding APY income according to different strategies. Of course, this is only the first step. Subsequently, users will receive LTC such as BBTC (full name: Liquidity Custody Token, which is BounceBit's original concept). Users can use such LTC or its native token BB for staking to obtain certain POS income and LSD of stBB\stBTC. Users can then re-stake based on these stBB\stBTC to further obtain the income of re-staking, realizing "one fish, three meals"!
The BounceBit team is also working hard on polishing the product. Not only does it provide three different revenue strategies, Auto, Manual, and Fixed, for users to choose from, but it also changed the front-end interface from the previous Chinese ink painting style to the current Western classical style. BounceBit has been constantly updating its products from the user's perspective.
2. Efficient and stable multi-currency income source
Where do these underlying benefits of BounceBit come from? The benefits provided by BounceBit to pledgers mainly come from the arbitrage of funding rates. Funding rate arbitrage is a trading strategy that takes advantage of the difference in funding rates between different markets. The key to this strategy is to maintain a delta neutral position. BounceBit currently mainly implements spot perpetual contract arbitrage.
The strategy involves executing two opposing trades at the same time, of equal quantity, including spot and perpetual contracts. Its goal is to obtain funding fee income from perpetual contract transactions. When the funding rate is positive, buying spot and selling perpetual contract positions of equal value can generate stable funding rate income. When the funding rate is negative, using leverage to sell spot borrowed coins and long perpetual contracts with the same leverage can obtain stable funding rate income.
Such an arbitrage strategy means that BounceBit can continue to make stable profits regardless of whether the market is rising, falling or sideways.
3. Safe asset appreciation plan
For crypto users on the chain, the most important thing is the transparency and security of funds. Whether it is Wormhole or Ronnin, hacker attacks on the chain are common. So how does BounceBit ensure the security of user assets?
The assets pledged by users on BounceBit will be securely managed by Mainnet Digital’s regulated custody service to ensure compliance and security. These assets are then mirrored through Ceffu’s MirrorX service. Here’s a quick guide:
Mainnet Digital is a crypto asset custody company that provides professional digital asset custody services. It uses a multi-party computing (MPC) architecture to protect assets and has 6 years of industry experience. Ceffu is the institutional custody partner of the Binance trading platform, providing institutional-grade cold storage technology and supporting multi-party secure computing (MPC). The over-the-counter settlement solution provided by MirrorX for Ceffu allows institutional investors to trade without transferring assets to Binance, while the assets are always independently managed by Ceffu. Therefore, user assets can obtain professional institutional-level security on BounceBit.
In short, in layman's terms, BounceBit allows BTC holders to earn income from multiple sources and has better security mechanisms to ensure the safety of users' assets.
Why is BounceBit severely undervalued?
BounceBit is the leader in the Bitcoin re-staking sector. There is no equivalent in the currencies that Binance has listed. We can compare BounceBit with Ethereum re-staking targets such as $ETHFI and $REZ.
Currently, BounceBit’s market value is 126 million US dollars, and the token $BB remains at around 0.3 US dollars.
Etherfi is the leading restaking protocol in the Ethereum ecosystem, and its token $ETHFI has a market value of 315 million US dollars.
However, the market share of BTC as a whole is much higher than that of ETH. In the Ethereum ecosystem, about 25% of native ETH and LST are staked, accounting for 12.5% each. Similarly, for the largest cryptocurrency such as Bitcoin, assuming that its staked scale can be benchmarked against Ethereum, about 25% of BTC will eventually be staked. It is conceivable that there will eventually be 160 billion native Bitcoins and 160 billion LSTs staked, generating a Bitcoin staking market of about US$320 billion.
Although Renzo, which is also engaged in Ethereum Restaking, has a market value of only 60 million US dollars, in terms of cost performance, BounceBit is much higher than the above two restaking projects.
In this round of Bitcoin institutional bull market, once the regulation is relaxed, even if it is 1% of Bitcoin asset allocation, the Bitcoin ecosystem will explode one after another. The Bitcoin ecosystem is still in a low value!
How can ordinary users participate in BounceBit?
Many people's first reaction when seeing BounceBit is to buy the token $BB. In fact, token investment is only one aspect. For ordinary users who are risk-averse, participating in BounceBit's CeDuFi financial management is a more cost-effective choice than directly holding the tokens and waiting for them to rise.
This can be done by:
(1) Ensure that assets are ready on the BSC or Ethereum chain.
(2) Open the website navigation and select the “CeDeFi” tab to connect your wallet.
(3) Select an investment mode from "Automatic", "Fixed", and "Manual". Select one of the listed strategies and click "Stake".
As shown in the above figure, users who interact can enjoy an annualized return of up to 197.59%. It should be noted that the specific APY return will vary depending on the market and the strategy selected.
