BounceBit (BB -16.07%) blends the advantages of Centralized Finance (CeFi) with the passive earning capabilities of Decentralized Finance (DeFi) to create unique earning opportunities for its users. The project was the first native BTC restaking chain to go live and currently offers various services to help traders cultivate passive income, manage their assets, and grow their portfolios. Here’s everything you need to know about BounceBit (BB).
What Problems Does BounceBit (BB) Attempt to Solve?
BounceBit introduces a CeDeFi infrastructure that helps to resolve several problems traders and crypto users face. For one, the platform was built from the ground up to be easy for anyone to navigate and operate. BounceBit users can access asset management protocols like “Auto Mode” that make building up reserves effortless.
Locked Liquidity
Locked liquidity is another primary concern that BounceBit helps to alleviate. The project enables Bitcoiners to take their locked funding and secure passive returns via advanced restaking features. This strategy allows Bitcoiners to secure additional rewards by lending liquidity while diversifying their portfolios across a wide range of digital assets.
Remove Gatekeepers
The open nature of BounceBit enables anyone to access its features and services to secure passive income and access the latest DeFi assets. The protocol doesn’t require any KYC or intrusive data. As such, its high-yield opportunities are accessible to everyone, regardless of their country or financial status.
Lack Interoperability
Another major concern for DeFI users is incompatibility. The DeFi sector has lots of opportunities. However, they are split across different chains and ecosystems. This lack of interoperability has left some DeFi users unable to access the features or assets they desire. Recognizing this restraint, the developers made BounceBit fully EVM-compatible, enabling users to access the massive Ethereum ecosystem seamlessly.
Lack of Functionality
Bitcoin may be the first and most recognized crypto asset, but it lacks the functionality of today’s top-performing DeFi options. BounceBit developers seek to bridge the smart contract functionality gap, enabling Bitcoin users to program, execute, and create powerful Dapps that leverage Bitcoin’s security alongside BounceBit’s performance.
Lack of Transparency
BounceBit seeks to introduce Bitcoin Finance 2.0 to the market. This version of Bitcoin-focused features provides top-notch transparency to users. Anyone can see vital network statistics in real-time using the free block explorer. Additionally, the network provides a community governance option, furthering user input and confidence.
Source – BounceBit (BB) Homepage
What are the Benefits of BounceBit (BB)?
Several benefits make BounceBit stand out among the crowd. For one, its unique structure allows users to enjoy the best of both worlds. They get access to the most popular CEXs for trading, alongside gaining exciting DeFi opportunities like accessing tokenized Real World Assets (RWAs) and more.
Security
BounceBit users remain protected by industrial-grade security protections. Specifically, the network leverages the proven security of Bitcoin alongside centralized custodial MPC-equipped services. This structure provides industrial-grade security and advanced functionality to users.
Easy-to-Use Staking Protocols
BounceBit users can stake their assets to secure passive income. The staking process is easy and there is a staking calculator which enables users to see exactly how much rewards they will earn based on their stated amount and time. Notably, BounceBit users can stake both Bitcoin and BounceBit tokens.
Fast Transaction Times
One of the main benefits of BounceBit is its transaction times. The network offers high performance with low latency that is on par with the top-performing DeFi blockchains in operation today. These quick settlement times help to ensure minimal spread or missed opportunities. Additionally, they make BB a resilient asset that can be used in the DeFi economy effectively.
Low Fees
BounceBit users enjoy very low fees thanks to the network’s structure. The use of a PoS consensus mechanism reduces network fees considerably and allows for faster settlement times. BounceBit users enjoy lower fees, 0 slippage, and tighter spreads thanks to the network’s hybrid structure.
How Does BounceBit Work?
BounceBit has a unique design that allows the project to offer users CeDeFi as a service. The use of Liquid Custody Tokens opens the door for Bitcoiners to become active members of the DeFi community, without giving up the security they enjoy. It connects economies and enables anyone to secure passive returns on their idle Bitcoin.
BounceBit Chain
At the core of this functionality is the BounceBit Chain. This dual-token-based layer 1 blockchain supports full DeFi programmability. It’s unique in that it utilizes Bitcoin for security but retains its DeFi access via its advanced features like restaking and support for RWAs.
Restaking
Users can secure additional rewards by restaking their assets. Using liquidity tokens, DeFi users can restake their assets securely. Specifically, users stake their Bitcoin or USDT and receive LTC tokens that can be used to access a variety of features and services provided. In this way, BounceBit empowers traders to secure stable returns on their BTC and USDT.
Onchain Farming
Another cool feature is the unchain farming option. Farming is similar to staking in that you secure returns based on the liquidity provided. The main differences are that there are no lockup periods and the APY changes. This structure means that it’s best to move your tokens between pools to get the maximum returns.
Real World Asset (RWA)
Real World Assets is a term that refers to assets that have been brought onto the blockchain. There has been a strong push to integrate RWAs across industries. These unique digital assets can represent any real-world asset, enabling a lot of benefits.
For example, a tokenized home can be split into smaller fractional tokens that can be sold internationally and for much less, enabling the asset to generate more revenue faster. RWAs can include items like car titles, art, collectibles, and even real estate.
Once converted into an RWA, these items can be sold and traded as easily as a crypto token. These advantages have made RWAs a fast-growing sector of the DeFi market and one that has sparked interest across both commercial and government sectors.
LSD Module
BounceBit users can delegate their tokens to validators to participate in keeping the network secure. For their efforts, users get rewards in the form of LST vouchers. These vouchers can then be used to restake assets, access DeFi features, and much more.
BounceClub
The BounceClub is an advanced AI-powered aggregator designed to make DeFi investing as easy as possible. The automated system assists you in determining the best DeFi options, meme coins, and GameFi tokens, built on the BounceBit Chain. Stay ahead of the trends and find support for projects you love here.
BounceBit Consensus
BounceBit uses a PoS consensus mechanism. This setup requires users to stake their tokens rather than conduct mining operations to secure the platform. The advantages are that it’s more accessible, costs less, and doesn’t require technical know-how to participate.
BounceBit’s PoS mechanism offers some features that aren’t found on any other network. For example, the platform operates as a dual-token Proof-of-Stake layer one blockchain. As such, there are validator operations that span two tokens, opening the door for more earning opportunities.
Token – BB
The main utility token for the BounceBit economy is BB. This versatile digital asset is how you pay for transactions, access DeFi features, reserve value, conduct exchanges, pay for smart contract executions, and participate in governance options. There is a fixed supply of 2.1B BB tokens slated for the entire life of the project.
Liquidity Custody Tokens
Users require LCTs to access BounceBit’s retaking and on-chain farming features. These tokens get issued to users when they stake their Bitcoin. They open the door for new functionality, including access to liquidity from centralized exchanges and support for Off-Exchange Settlement (OES) options.
BounceBit Governance
BounceBit users gain a voice in the direction of the protocol via the governance system. This system requires users to stake their BB tokens to vote and put forth proposals. They can use this power to alter features, fees, and other crucial components of the protocol.
How to Buy BounceBit (BB)
Currently, BounceBit (BB) is available for purchase on the following exchanges.
Uphold – This is one of the top exchanges for United States residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.
Binance – Accepts Australia, Singapore, the UK, and most of the world. Canadian & USA residents are prohibited. Use Discount Code: EE59L0QP for 10% cashback on all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. Restrictions may apply, depending on location.
BounceBit (BB) – Unlocking Bitcoin’s Stored Liquidity
BounceBit provides a glimpse into the future of CeDeFi. The protocol allows Bitcoiners to participate in DeFi features with minimal risk. They can utilize the LCTs to start seeing rewards in minutes, and when they want to, they can trade their Bitcoin on reputable CEXs. All of these benefits have made BounceBit a project to watch moving forward.
You can learn more about exciting blockchain projects here.