Binance invested in bounce bit. You can learn about what bouncebit does, the leader in Bitcoin staking chain.
BounceBit is a Bitcoin (BTC)-related blockchain project. It is designed as a staking chain specifically for Bitcoin, aiming to add new features and value propositions to the Bitcoin ecosystem. The following is an overview of BounceBit's core concepts and features:
1. PoS staking mechanism: BounceBit uses Proof-of-Stake (PoS) as its consensus mechanism, rather than Bitcoin's original Proof-of-Work (PoW). This means that participants can become validation nodes by staking their own cryptocurrencies (mainly Bitcoin and BounceBit's native tokens) and participate in block validation and network maintenance, rather than relying on energy-intensive mining processes. 2. EVM compatibility: The BounceBit network is compatible with the Ethereum Virtual Machine (EVM) and supports smart contracts written in Solidity. This feature allows many decentralized applications (dApps) and developer tools on Ethereum to be directly ported to BounceBit, expanding the application scenarios and developer participation of the Bitcoin ecosystem.
3. Dual Token Staking System: BounceBit has implemented a unique dual token PoS system that allows users to stake both Bitcoin and BounceBit’s native tokens to secure the network. This design helps enhance the network’s inclusiveness and governance structure, allowing both Bitcoin holders and BounceBit token holders to directly participate in the network’s validation process and decision-making.
4. Asset Diversity and Integration: In addition to native Bitcoin, BounceBit also recognizes and integrates tokenized versions of Bitcoin on other chains, such as BTCB on Binance Chain and Wrapped Bitcoin (WBTC) on Ethereum, which helps increase the flexibility of Bitcoin usage and ecological participation in cross-chain scenarios.
5. Asset liquidity and income opportunities: BounceBit provides a re-staking infrastructure that supports BTC holders to participate in low-risk arbitrage strategies on various centralized exchanges by staking their assets, and obtain node staking rewards and re-staking income by staking BounceBit tokens and/or generating specific tokens (such as LSD tokens), thereby releasing the liquidity of Bitcoin assets and creating additional income.
6. Regulatory Compliance and Custody Guarantee: BounceBit’s re-staking infrastructure is supported by regulatory custody from institutions such as Mainnet Digital and Ceffu, aiming to solve the trust issue of the underlying Bitcoin assets and provide security for users in a compliant manner.
7. Network growth and ecosystem construction: BounceBit has achieved rapid growth in a short period of time after its launch, and its Total Value Locked (TVL) has quickly exceeded $100 million, showing the market's interest in and acceptance of this innovative Bitcoin staking chain model. In summary, BounceBit is an innovative blockchain project that aims to expand smart contract functions, improve asset liquidity, enhance network governance structure, and attract diversified investments for the Bitcoin ecosystem by introducing PoS staking, EVM compatibility, dual token staking system, and a rich re-staking product. It enables Bitcoin holders to earn benefits in a variety of network environments through the innovative CeFi (centralized finance) + DeFi (decentralized finance) framework, thus providing another development path and value capture method outside of Bitcoin Layer 1.
