Understanding BounceBit: A Blast-style follower and Bitcoin staking chain with custodial services provided by Binance
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Understanding BounceBit: A Blast-style follower and Bitcoin staking chain with custodial services provided by Binance
BounceBit chooses to introduce a hybrid PoS mechanism at the consensus layer and adopts a dual-token staking model to ensure network security.
Navigating Web3 tides with focused insightsWritten by: TechFlow
While various ecosystem applications around Bitcoin continue to emerge, how can Bitcoin itself generate returns?
For example, if you have idle BTC, how can you maximize its yield?
Amid surging interest in BTC, new demand has emerged. BounceBit was created precisely to solve the challenge of BTC’s lack of passive income—positioned as the first native BTC staking chain, enabling users to stake idle BTC and earn yields.
In terms of project backing, BounceBit has received support from Binance Custody (CEFFU), Breyer Capital, and Mainnet Digital.
What is BounceBit?
As the most decentralized asset in the current crypto industry, BTC lacks genuine utility opportunities within existing public blockchains. BounceBit introduces a hybrid PoS mechanism at the consensus layer and adopts a dual-token staking model (Bitcoin and BounceBit’s native token) to ensure network security. Meanwhile, BounceBit’s execution layer will achieve EVM compatibility, accelerating the migration of existing DeFi liquidity into the Bitcoin ecosystem.
Additionally, BounceBit introduces an innovative BTC mirroring mechanism, allowing Bitcoin holders to earn income both on-chain through PoS and DeFi, as well as off-chain through CeFi.
Here's how it works:
Users first deposit BTC into Binance, then withdraw BTCB to the BNB Chain. Through the BounceBit website, they deposit BTCB into Ceffu (Binance Custody). Users who deposit more than 1 BTC can also choose to have their assets managed by trading teams that implement delta-neutral arbitrage strategies. Additionally, users receive BTCB LSD, known as BounceBTC, which can be staked together with the BounceBit token at validator nodes to earn BTC rewards.
A frequently asked question is: where do the staking rewards for BTC come from? BounceBit’s official documentation provides the answer:
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CeFi rewards provided via regulated custody services from Mainnet Digital and CEFFU, along with various asset management services;
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Node operation rewards from staking and PoS mining;
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DeFi yields generated from BounceBit’s ecosystem applications.
Currently, users can deposit funds via two networks: Ethereum and BNB Chain. On the Ethereum network, supported tokens include WBTC, Auction, Mubi, and DAI. The BNB Chain only supports the BTCB token. All deposited funds will become withdrawable upon the BounceBit mainnet launch in May 2024.
BounceBit Token and Airdrop
As mentioned earlier, BounceBit will launch a native token used alongside BTC stakers to secure the network and earn rewards. Moreover, BounceBit states that native token holders will gain additional benefits through revenue sharing and governance rights. Airdrops represent one way for early participants to acquire BounceBit tokens. In addition to initial airdrops for early $Auction holders, BounceBit has launched a points campaign called Point Paradise to reward early adopters.
Users can earn points on BounceBit through the following methods, with point amounts depending on:
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The amount of assets deposited, including WBTC, Auction, Mubi, DAII, and BTCB.
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Inviting friends: the deposited amounts from both the inviter and invitee.
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Within each 24-hour cycle, if you and your invitees reach the official deposit milestone (0.1 BTC), you gain a chance to win Boost Cards and Swift Cards. Boost Cards allow users to earn more points during each snapshot at the end of a cycle, while Swift Cards shorten the time cycle, enabling participants to quickly enter the next round and accumulate points faster.
BounceBit Roadmap
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Early Access (now): Stake $BTCB, $WBTC, $AUCTION, $MUBI, $DAII and earn points;
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Mainnet Launch (April 23);
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Airdrop (May): BounceBit points can be redeemed for BounceBit tokens, and assets become withdrawable.
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