BounceBit, a Bitcoin re-collateralization project, has seen its native token $BB double in price within three days. The project aims to create income opportunities for Bitcoin holders by providing yield products and integrating CeDeFi services. This article introduces the income opportunities offered by BounceBit.
Table of Contents:
1. What is BounceBit?
2. Project Background
3. How to Participate in the Ecosystem
BounceBit is a Bitcoin re-collateralization project that aims to build income infrastructure for Bitcoin, offering institutional-grade yield products, re-collateralization application scenarios, and CeDeFi services to enable Bitcoin holders to profit. The implementation of CeDeFi services includes:
1. CeFi: By partnering with regulated custodial service providers such as Mainnet Digital and Ceffu, BounceBit allows users to earn actual income from CeFi through the protocol-designed Liquidity Custodial Tokens (LCTs) and services such as fee arbitrage and fixed income.
2. DeFi: Users can use LCTs to participate in DeFi operations such as collateralization, re-collateralization, and lending on the BounceBit chain. Interestingly, the protocol has introduced BounceClub, where users can choose pre-built DeFi products from the BounceBit App Store to create their own DeFi space.
BounceBit chain is a Layer1 network that uses a dual-token PoS consensus mechanism and is maintained by $BBTC and BounceBit native token $BB. It combines the security of Bitcoin and is fully compatible with EVM (with Gas paid in $BB).
BounceBit is built by Bounce Finance, which previously launched an auction service. It later introduced the Bitcoin ecosystem IDO platform, Bounce Auction, with its native token $Auction, which has also seen good growth this year.
After completing a $6 million funding round in February, BounceBit received investment from Binance in April and became the first project to be listed on the Binance Megadrop platform.
To summarize, BounceBit consists of three main elements: the BounceBit chain, BounceClub DeFi product club, and collateralization and re-collateralization services. These services can be accessed through the BounceBit Portal website, and the interactive methods are as follows:
1. On the deposit page, BounceBit supports the deposit of BTCB on the BNB chain and USDT on Ethereum. After depositing, USDT will be converted into its LCT form – $BBUSD, and BTC will be converted into $BBTC. The page also supports redemption, which can be claimed every 1 day.
2. On the collateralization page, $BBTC can be collateralized into stBBTC, enjoying a 5% APR. However, this is only supported on the BounceBit chain. If deposited from the aforementioned public chains, $BBTC needs to be bridged to the BounceBit chain on the bridging page, which requires approximately 12U of gas.
3. Additionally, $BB can be collateralized into stBB (in its liquidity collateral token LSD form), enjoying a 22% APR. The unstaking interval is 1 day, and it needs to be claimed.
4. On the Premium Yield Generation page, users can choose a strategy and collateralize. The minimum threshold is 0.1 $BBTC or 1000 $BBUSD, not suitable for small-scale users. Besides the in-house chain, BNB and Ethereum are also supported. Furthermore, stBBTC can participate in activities on the platform.
The unstaking interval is 7 days, and it needs to be claimed. According to the official statement, the platform’s activities can be tracked on DefiLlama, and it has already exceeded $140 million.
Recently, BounceBit partnered with synthetic dollar protocol Ethena, allowing $BBUSD holders to enjoy an APY of up to 35.9% through collateralization and earn 5x sats. More details will be revealed this week, and it is worth paying attention to whether it will accelerate the expansion of USDe. Currently, its market value is close to $2.8 billion.
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