The domain of Bitcoin Layer 2 solutions is undergoing a transformative phase, characterized by the emergence of diverse methodologies and frameworks. BounceBit introduces a paradigm shift, drifting away from conventional Layer 2 solutions and presenting the concept of BTC Restaking Chain with a dual-token PoS Layer 1 approach. We invite you to delve into the core philosophy and strategic decisions that form the development of BounceBit — a restaking chain that reenvisions the role of BTC.
Reimagining Bitcoin’s Value: BounceBit’s Asset-Driven PoS Layer 1 Approach
At the core of BounceBit’s innovative framework lies the conviction that Bitcoin’s infrastructure should be predominantly asset-driven, a philosophy that accentuates the versatility of BTC. Rather than tethering itself to the constraining paradigms of existing Layer 2 solutions anchored directly to the Bitcoin blockchain, BounceBit distinguishes itself as a standalone Proof of Stake (PoS) Layer 1. The BounceBit network is secured by validators staking both native Bitcoin and BounceBit’s native token, establishing a dual-token security system that not only strengthens the network but also enhances the intrinsic value of BTC by enabling its active role in network validation and yield generation.
This unique approach avoids traditional protocol-level bindings in favor of an asset-level integration, effectively merging the reliability of Bitcoin with the innovative potential of BounceBit’s native functionalities. By doing so, BounceBit creates a symbiotic relationship between BTC and BounceBit’s native token, leveraging the strengths of each to create a more resilient and versatile chain.
Going beyond the confines of the Bitcoin main chain, BounceBit embraces interoperability with EVM-compatible chains, recognizing and incorporating staking assets such as BTCB on the BNB Chain and WBTC on Ethereum. This diversifies the use cases for staked BTC but also invites Web3-wide participation, thereby enriching the entire BTC asset class.
Transparent CeFi Integration as the Bedrock for the BTC Ecosystem
In the context of Bitcoin, generating interest with idle BTC has been enormously challenging compared to the mature Ethereum ecosystem which is rich in yield generation opportunities provided by various projects such as Lido and Eigenlayer. The prevalent Bitcoin protocols, akin to Blast and Manta on Ethereum, fail to yield returns when BTC is held within multi-signature wallets. BounceBit confronts this issue head-on by integrating a transparent centralized finance (CeFi) model, utilizing the regulated custody services of Mainnet Digital and Ceffu complemented by Ceffu’s MirrorX technology. This allows Bitcoin to maintain its on-chain presence while at the same time engaging in trading activities on centralized exchanges (CEX) to generate yield. The outcomes of these trades are reconciled on-chain with a T+1 settlement cycle, ensuring liquidity and transparency.
BounceBit’s vision is to reinforce rather than replace the integrity and trust inherent in CeFi. By enhancing its transparency, we establish a new foundational moment for Bitcoin, mirroring Ethereum’s pivotal shift with Lido. Our approach aims to solidify trust in CeFi practices, by giving the right reasons to do so.
Mobilizing Active Bitcoin in the Ecosystem
Recognizing the inherent conservatism of Bitcoin holders, especially regarding the movement of assets from secure cold storage, BounceBit implements an initiative aimed at activating the most liquid and actively used BTC. This segment of Bitcoin is typically engaged on EVM-compatible networks and centralized exchanges, where it is at the core of trading, lending, and borrowing pursuits in search of yield.
BounceBit supports the seamless transition of pure BTC into more agile forms such as BTCB on the BNB chain and Wrapped Bitcoin (WBTC), facilitating their entry into productive activities. Users are provided with the option to deposit their BTC into a secure custody service accessible through the EVM network, thus enabling the bridging of these assets onto the BounceBit platform. This process allows for the accrual of on-chain yields without needing direct interactions with the Bitcoin main chain.
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.
