BounceBit is a middleware protocol built on top of the Bitcoin asset class, advancing a significant network expansion through a cryptoeconomic effort known as restaking. BounceBit builds the bridge between CeFi and DeFi.
Understanding the BounceBit Framework
At its core, BounceBit’s innovation stems from its BTC Restaking mechanism. This relatively new concept acts as the enabler of this project. BounceBit will build a plethora of infrastructure, exploring the use-cases of Restaking for various types of Bitcoin. This infrastructure can take on various forms, including sidechains, oracles, bridges, virtual machines, data availability layers and more. The goal is to anchor the entire framework by restaking and aggregating shared security across all components.
CeFi + DeFi Foundation
The foundation of BTC Restaking is supported by regulated custody funds. Multiple types of Bitcoin across various networks, including native Bitcoin, BTCB on BNBChain and WBTC are able to be deposited in CeFi custody, which is backed by Mainnet Digital and Ceffu. Ceffu’s Mirror X integration ensures on-chain traceability and regular audited balance sheets by Mainnet Digital maintain integrity and trust. Idle BTC earns yield through delta-neutral funding rate arbitrage. This pooled BTC can then be minted as a wrapped version of BTC on corresponding shared security clients, e.g. BounceBit chain.
Shared Security Clients
Shared security clients (SSCs) are the applications of Restaking that will drive the ecosystem towards its full potential. SSCs could be various sidechains, including fast finality layers, data availability layers, virtual machines, keeper networks, oracle networks, bridges and much more.
The term basically encapsules any system that can benefit from a validation semantic achieved by BTC Restaking.
The integration of SSCs will unlock a plethora of opportunities for ecosystem participants. SSCs play a pivotal role in accelerating the pace and breadth of open innovation by harnessing smart contracts to borrow trust from the Bitcoin network.
Users with BTC on BounceBit are presented with multiple options on how to make use of their tokens:
- Delegate their tokens to Validators — node operators that facilitate the consensus mechanism on-chain. In return those stakers will receive a Liquid Staking Derivative, stBTC. This staked BTC can be restaked to SSCs to earn additional staking rewards, or be used for other economical primitives, e.g. Liquid Restaking Tokens.
- Directly stake their BTC to SSCs like bridges and oracles.
- Use it to take part in DeFi activities like AMMs, leverage trading, farming and so on
The First Showcase
The BounceBit PoS Chain will be the first showcase of BTC Restaking infrastructure. It is secured by validators staking BTC and staking BounceBit’s native token — A dual-token system leveraging native Bitcoin’s security, liquidity and low volatility. Unlike existing Layer 2 solutions, BounceBit interacts with Bitcoin only on the asset level instead of the protocol level, taking a Layer 1 Proof of Stake approach.
BTC in regulated CeFi Custody is locked so that the user can mint a wrapped version of BTC on the BounceBit chain, we call it bounceBTC. This BTC can be delegated to node operators, that return a voucher to the staker, stBTC. This liquid staking derivative can then be restaked to other SSCs, like sidechains, bridges and oracles, or be used to participate in further yield generation. All of this happens, while the BTC in the regulated custody is earning risk-free yield through funding rate arbitrage.
Roadmap
BounceBit’s roadmap is structured towards the BounceBit Mainnet Launch in April, coinciding with the Bitcoin halving. There will be plenty of campaigns leading up to and on the day of launch of both Testnet and Mainnet, distributing points and BounceBox access. Additionally, an insurance fund will be launched with Mainnet, to backstop any losses due to normal market operation incurred under premium yield generation employing market-neutral strategies.
Throughout the remainder of 2024, we are committed to enrich our ecosystem with BTC powered infrastructure, funds and services.
About BounceBit
BounceBit is a middleware protocol built on top of Bitcoin, advancing a significant network expansion through a state-of-the-art cryptoeconomic effort known as restaking. Critical ecosystem infrastructure like bridges and oracles are secured by restaked BTC. BounceBit integrates a transparent CeFi foundation securing TVL via the regulated custody of Mainnet Digital while leveraging on-chain asset traceability. Through an innovative CeFi + DeFi framework, BounceBit empowers BTC holders to earn yields across multiple networks.
