BounceBit, The First BTC Staking Chain, Reaches $100M TVL In A Week After Early Access Launch

6 min readFeb 6, 2024


Just one week following its Early Access launch, BounceBit has achieved $100M TVL with more than $70M BTC staked, marking a significant milestone in BounceBit’s journey of establishing itself as the first BTC staking chain and the premier BTC liquidity market. This achievement is grounded in BounceBit’s strategic advancements across three key dimensions: 1) Technological innovation through introducing the first BTC staking chain with a dual-token Proof-of-Stake mechanism; 2) Integration of CeFi with DeFi to enhance TVL and unlock diverse yield generation opportunities via unique on-chain mirror mechanism; 3) Cultivating a robust BounceBit ecosystem, bolstered by the support of leading BTC projects.

First BTC Staking Chain Adapting A Dual-Token PoS Layer 1 Approach

BounceBit distinguishes itself by being the first-ever BTC staking chain that implements a dual-token Proof-of-Stake mechanism. This approach not only leverages the inherent security of Bitcoin by integrating it into BounceBit’s security framework but also introduces an innovative way to engage with DeFi solutions centered around Bitcoin liquidity. BounceBit ensures seamless interaction with a vast array of decentralized applications and smart contracts through its full compatibility with EVM, enhancing its utility and versatility within the broader blockchain ecosystem.

While traditional efforts within the Bitcoin ecosystem have largely focused on Layer 2 solutions built on top of Bitcoin, BounceBit offers a unique proposition by adopting an innovative dual-token PoS Layer 1 model with an asset-driven approach. This model facilitates a more inclusive and dynamic network governance structure, enabling token holders to participate directly in the network’s security and decision-making processes by staking both BTC and the BounceBit token. Initially BounceBit will introduce diversified validators, divided into two groups: half allocated for BTC and the other half for BounceBit Token.

The BTC Token is integral to fortifying the security framework of the BounceBit network, where its bridge functions as a crucial hub for bridging BTC Tokens between the Bitcoin network and EVM Chains such as BNB Chain and Ethereum. Once bridged to BounceBit, BTC Tokens will be uniformly mapped as BounceBTC. Current market practices often rely on multi-signature contracts for bridge operations, managed by a centralized array of team addresses, thus presenting latent security vulnerabilities. In contrast, BounceBit delegates the crucial role of bridge security to its Validators, aligning the bridge’s security profile with the overarching network security. Drawing parallels to the concept of Restaking’s Shared Security, BounceBit Validators undertake additional responsibilities by managing Bridge Nodes, facilitating the verification of cross-chain messages. Achieving consensus among more than 50% of Validators is imperative for the ratification of cross-chain transactions at the contractual layer, ensuring a decentralized and secure validation process.

CeFi+DeFi Infrastructure Facilitating TVL Growth and Yield Generation for idle BTC

On January 29, 2024, at 2:01am UTC, BounceBit launched The Water Margin Event, offering early access to staking $BTCB, $WBTC, $AUCTION, $MUBI, $DAII, $USDT, and $FDUSD. Since then, BounceBit’s Total Value Locked (TVL) has experienced rapid growth, reaching $10M within just 10 minutes of launch and averaging an increase of roughly $11.5M daily.

To manage this rapidly expanding TVL and address the challenge of generating yield with idle BTC, BounceBit has integrated a transparent Centralized Finance (CeFi) foundation backed by Mainnet Digital and Ceffu. By securing users’ staked assets via the regulated custody of Mainnet Digital while leveraging the transparent on-chain asset traceability provided by Ceffu’s MirrorX, BounceBit allows assets to reside on-chain while facilitating trading on centralized exchanges (CEX), with trading outcomes settled on-chain on a T+1 basis.

This transparent CeFi integration is structured to avoid compliance issues while unlocking yield generation avenues for BTC holders. The process for generating BTC yield on BounceBit is straightforward from a user’s perspective:

  1. Begin by accessing your Binance account and withdrawing BTC to your BNB Chain wallet address, automatically receiving BTCB in return.
  2. Next, deposit your BTCB at BounceBit’s Water Margin Event page for early access to staking opportunities on BounceBit:
  3. Upon deposit, the BounceBit contract moves TVL into the secure, regulated custody of Mainnet Digital and Ceffu. In exchange, users are awarded LSD tokens and the option to partake in various funding rate arbitrage strategies available to those who stake BTCB on BounceBit. (At this moment, the feature of LSD token rewards is not live yet. Stay tuned for updates.)
  4. Users then have the opportunity to transfer their LSD tokens to the BounceBit chain, converting them into BounceBTC, which serves as a versatile asset within the ecosystem.
  5. Finally, BounceBTC enables users to generate yield by participating in PoS staking on BounceBit or by engaging in a variety of DeFi activities within the BounceBit ecosystem.

BounceBit has now introduced different strategies of delta neutral Funding Rate Arbitrage as a whitelist-only feature for users staking at least 1 $BTCB on BounceBit. Within the first day of this feature’s launch, over 80 $BTC was staked for Funding Rate Arbitrage, now actively generating yield. For details on accessing this feature, consult the official guide and follow @bounce_bit on X (formerly Twitter).

In addition to yield generation through CeFi integration, BounceBit further expands opportunities for users by offering rewards for node operations through BTC staking on the BounceBit chain, alongside yields from engaging in on-chain DeFi activities within the BounceBit ecosystem and the Bounce Launchpad. BounceBit’s CeFi+DeFi infrastructure combines CeFi’s trusted transparency with dynamic DeFi activities within our onchain ecosystem, presenting a diversified portfolio of yield-generating streams for users.

Building the BounceBit Ecosystem, Backed By Prominent BTC Allies

BounceBit is powered by Bounce Brand, a prominent decentralized platform building within the BTC ecosystem. Bounce Brand has earned a reputation for its decentralized on-chain auction protocol and its top-tier Web3 Launchpad. Esteemed BTC projects, such as MultiBit and BitStable which have received support from the Bounce Launchpad, are set to be integral partners of the BounceBit ecosystem from its inception. With the support of numerous leading BTC projects, the BounceBit ecosystem is expected to significantly enhance Bitcoin’s smart contract functionality and create a dynamic, yield-centric environment.

BounceBit will introduce an App Store, designed to simplify the creation and deployment of dApps by offering essential Web3 components like DeX, IDO, and Marketplaces. Developed in collaboration with third-party teams and reputable auditors, BounceBit App Store aims to streamline asset issuance and enhance security without the need for coding skills, thereby making the platform accessible to a wider audience.

Acquiring a BounceBox is a prerequisite for users intending to launch products on BounceBit. This on-chain space allows for the easy integration and configuration of components from the BounceBit App Store, simplifying previously complex processes such as auction strategy development and bot prevention, all within a secure environment.

Furthermore, the BounceBit App Store will extend beyond DeFi to include social and metaverse applications, enabling users like community influencers to engage more deeply with their communities through private channels within their BounceBox. Leveraging BounceBit’s extensive experience in Web3 product development, BounceBit strives to provide a comprehensive, secure environment for the deployment and management of dApps, contributing significantly to the Bitcoin ecosystem.

About BounceBit

BounceBit is the first-ever native BTC staking chain. The BounceBit network is secured by staking both the BTC token and the BounceBit token. BounceBit’s PoS mechanism introduces a unique dual-token staking system by leveraging native BTC security with full EVM compatibility. BounceBit integrates a transparent CeFi foundation securing TVL via the regulated custody of Mainnet Digital while leveraging the on-chain asset traceability provided by Ceffu’s MirrorX. Through an innovative CeFi + DeFi infrastructure, BounceBit empowers BTC holders to earn yields through native validator staking, DeFi ecosystem activities and a CeFi mirroring mechanism powered by Ceffu and Mainnet Digital.

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