For retail investors, the window to wealth freedom often only fantasizes about big unilateral gains. Their expectations for a sharp rise are often only about a week, while large platform investments often focus on trends and development space. They often allow no returns in a few weeks, months, or even a year or two, which is fatal to retail investors, because in addition to not having long-term idle money, retail investors cannot hold on to their money due to the lack of transparency of information. To obtain higher returns through precise sniping, especially excellent projects in certain sectors, we need to have a comprehensive understanding, such as $BB , which is doing very well in the CeDeFi field. Many people may not understand the relationship between them, so I will share it with you here.
What does BounceBit do?
@BounceBit Dedicated to providing BTC Restaking solutions, serving as a foundational layer for different Restaking products. It adopts a dual-token hybrid POS mechanism, with the blockchain network maintained by $BBTC and BounceBit's native token $BB, combining the security of Bitcoin and full compatibility with EVM.
What advantages does BounceBit have?
One, CeFi + DeFi parallel income mechanism
BounceBit combines the high profits of CeFi (centralized finance) with the on-chain transparency and security of DeFi (decentralized finance). CeDeFi is both an innovation point and a core competitive advantage of BounceBit. BounceBit ensures that its platform is technically compatible with other major blockchain protocols (such as Ethereum, Binance Smart Chain, etc.), including support for standardized token protocols (such as ERC-20), allowing these tokens to be issued and traded across different chains.
Users can deposit their crypto assets such as BTCB and USDT into the BounceBit protocol. After depositing, they will receive corresponding APY returns based on different strategies. Of course, this is just the first step. Subsequently, users will receive LTC-like tokens such as BBTC (Liquidity Custodian Token, a concept original to BounceBit). Users can stake such LTC or its native token BB to earn certain POS rewards and stBB\stBTC's LSD. Users can then re-stake these stBB\stBTC to further earn re-staking rewards, achieving 'one fish, three eats'!
The BounceBit team is also diligently refining the product, not only providing three different yield strategies for users to choose from: Auto, Manual, and Fixed, but also updating the frontend from the previous Chinese ink style interface to the current Western classical style. BounceBit has been continuously updating its product from the user's perspective.
Two, efficient and stable multi-currency income sources
Where do these underlying returns from BounceBit come from? The returns provided to stakers by BounceBit mainly come from funding rate arbitrage. Funding rate arbitrage is a trading strategy that utilizes the differences in funding rates between different markets. The key to this strategy is to maintain a delta-neutral position.
BounceBit currently mainly implements a spot perpetual contract arbitrage strategy, which involves executing two opposing trades of equal quantity, including spot and perpetual contracts. The goal is to earn funding fee income from perpetual contract trading. When the funding rate is positive, buying spot and selling equivalent positions in perpetual contracts can generate stable funding fee income. When the funding rate is negative, using leverage to sell the spot borrowed currency while taking the same leverage long on the perpetual contract can also yield stable funding fee income.
Such an arbitrage strategy means that BounceBit can continuously and stably earn profits whether the market is rising, falling, or consolidating.
Three, safe asset appreciation solutions
For crypto users on the chain, the most important thing is the transparency and security of funds. Whether it's Wormhole or Ronin, hacking incidents on the chain are not uncommon. So how does BounceBit ensure the safety of user assets?
User assets staked on BounceBit will be securely managed by Mainnet Digital's regulated custodial service, ensuring compliance and security. These assets are then mirrored through Ceffu's MirrorX service. A brief introduction: Mainnet Digital is a cryptocurrency asset custody company providing professional digital asset custody services, using multi-party computation (MPC) architecture to protect assets, with six years of industry experience; Ceffu is the institutional custody partner of the Binance trading platform, offering institutional-grade cold storage technology and supporting multi-party secure computation (MPC). MirrorX provides an over-the-counter settlement solution for Ceffu that allows institutional investors to trade without transferring assets to Binance while the assets are always independently custodied by Ceffu. Therefore, user assets on BounceBit can receive professional institutional-level security guarantees.
In simple terms, BounceBit allows BTC holders to earn returns from multiple sources while having better security mechanisms to ensure the safety of user assets.
Why is BounceBit severely undervalued?
As a leader in the Bitcoin re-staking sector, BounceBit has no equivalent counterparts among the cryptocurrencies listed on Binance. We can compare BounceBit with re-staking targets in the Ethereum sector, such as $ETHFI and $REZ. Currently, BounceBit's market value is $126 million, with the token $BB maintaining around $0.3. Etherfi, being the leading Restaking protocol in the Ethereum ecosystem, has a market cap of $315 million. However, the entire BTC market share is far higher than that of ETH. Approximately 25% of the native ETH and LST in the Ethereum ecosystem have been staked, each accounting for 12.5%. Similarly, for Bitcoin, the largest market cap cryptocurrency, if its staking scale can match Ethereum's, about 25% of BTC will eventually participate in staking, it can be imagined that there will be about 160 billion native Bitcoins and 160 billion LST participating in staking, generating approximately $320 billion in Bitcoin staking market. Although Renzo, which is also doing Ethereum Restaking, has only a $60 million market cap, BounceBit significantly surpasses the two re-staking projects above in terms of cost-effectiveness. In this round of Bitcoin institutional bull market, once regulations are relaxed, even a 1% allocation of Bitcoin assets will cause the Bitcoin ecosystem to explode! Currently, the Bitcoin ecosystem is still in a value depression!
