BounceBit

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The Genesis of BounceBit

Founded in December 2023 by Jack Lu, a former partner at NGC Ventures, BounceBit quickly gained traction in the blockchain community. Within its first month, the platform amassed over $545 million in total value locked (TVL), demonstrating significant market confidence.

In February 2024, BounceBit secured $6 million in seed funding from prominent investors, including Blockchain Capital and Breyer Capital. Subsequent strategic investments from OKX Ventures further bolstered its financial foundation.

Core Features of BounceBit

Dual-Token PoS Layer 1 Blockchain

At its core, BounceBit operates a dual-token PoS Layer 1 blockchain that leverages the security of BTC while maintaining full Ethereum Virtual Machine (EVM) compatibility. This architecture allows developers to deploy decentralized applications (dApps) while benefiting from Bitcoin’s security and Ethereum’s smart contract capabilities.

Innovative Restaking Mechanism

BounceBit introduces a novel restaking mechanism that enables BTC holders to stake their assets within the ecosystem. This not only enhances network security but also offers staking rewards, increasing the utility and yield potential of BTC holdings.

Integration with Real-World Assets (RWA)

Through partnerships with entities like CEFFU, BounceBit integrates real-world assets into its platform. This allows the creation of Liquidity Custody Tokens (LCTs), representing tangible assets and offering users yields from both CeFi and DeFi sources.

The BounceBit Ecosystem

BB Prime

BB Prime empowers institutional investors by providing RWA liquidity, layered yield opportunities, and optimized capital efficiency with a focus on transparency and security.

Asset Management Solutions

  • Smart Allocation: Users can allocate to multiple strategies using Auto mode or customize their portfolio to earn CeDeFi yields secured by CEFFU.
  • One-Click Fixed Yield: Enables users to earn stable returns on BTC and USDT with a simple, user-friendly interface.
  • Structured Products: Upcoming features like Dual Investment and SharkFin offer market-driven strategies for yield optimization.

Liquidity Management

BounceBit’s on-chain broker service enables quick settlements with minimal fees, zero slippage, and tighter spreads by utilizing Liquid Custody Tokens.

BounceClub and the BounceBit App Store

BounceClub is an AI-powered aggregator built on BounceBit for DeFi, GameFi, and Memecoins. The BounceBit App Store allows developers to design, launch, and manage dApps. In April 2024, BounceBit announced a 100 million BIT incentive program to accelerate dApp innovation.

Tokenomics of BB

The BB token has multiple uses across the BounceBit ecosystem:

  • Staking: Participate in network security and earn rewards.
  • Transaction Fees: BB is used to pay transaction and smart contract fees.
  • Liquidity Provision: Enables smooth asset flow across the platform.
  • Cross-Chain Compatibility: Built for interoperability across multiple blockchains.

The total supply of BB tokens is capped at 2.1 billion. Allocations are distributed across incentives, investors, project team, advisors, and ecosystem reserves.

Strategic Partnerships and Investments

BounceBit’s rapid growth is backed by investments from leading firms. In February 2024, it raised $6 million from Blockchain Capital and Breyer Capital. In March 2024, OKX Ventures also joined in with strategic investments, endorsing BounceBit’s vision of expanding BTC's utility through restaking and CeDeFi offerings.

Future Prospects

  • Democratizing Institutional Yield: Bringing high-yield BTC-based financial products to retail and small institutional investors.
  • CeFi + DeFi Fusion: Harnessing the strengths of both centralized and decentralized finance to provide secure, transparent, and efficient yield generation.
  • BTC Utility Expansion: By allowing BTC restaking and integration with real-world asset yields, BounceBit significantly increases Bitcoin’s use cases.