CeDeFi is the combination of CeFi and DeFi, combining the best features and attributes of the two financial systems. BounceBit builds on CeFi to enable Bitcoin for DeFi. It is undeniable that Bitcoin is strongly connected to centralized finance and is even trending towards it (ETF).
After the events of 2022 the trust was damaged, but the truth is that CeFi is here to stay. BounceBit confronts the challenges of transparency and misuse that have been prevalent in BTC finance 1.0. By employing a transparent CeFi model, powered by Ceffu’s MirrorX technology and Mainnet Digital’s custody services. Through off-exchange settlement solutions like Ceffu’s MirrorX you can securely access the large liquidity on exchanges and earn yield through diverse trading strategies, while funds stay safe on-chain in MPC wallets.
BounceBit works with multiple experienced asset managers with a longstanding positive return track record to trade through MirrorX. All of the asset managers use Funding Rate Arbitrage as their trading strategy. Since the beginning of Premium Yield Generation on February 5th, the platform has accumulated a total profit of 48.28 BTC and more than $500K USDT, which comes out to an average APR of 15.9% for BTC and 46,29% for USDT.
CeFi on the BounceBit platform allows for assets to be built on top. Here is where BounceBTC(BBTC) comes into play. It is wrapped BTC that is backed by various types of BTC in custody as collateral. BBTC can be then used on the BounceBit chain, by staking, restaking and partaking in the usual DeFi activities. You can imagine BBTC as something like a voucher that you have funds in custody. The assets locked in CeFi yield generation is not only safe but could also earn additional yield from DeFi on BounceBit’s Layer 1 chain. It is a positive-sum game with lower fees, better security, accessibility, speed and lower cost.
BounceBit is building a BTC restaking infrastructure that provides a foundational layer for different restaking products, secured by the regulated custody of Mainnet Digital and Ceffu. The BounceBit chain, designed as a showcase of a restaking product within the BounceBit ecosystem, is a PoS Layer 1 secured by validators staking both BTC and BounceBit’s native token — A dual-token system leveraging native Bitcoin’s security with full EVM compatibility. Critical ecosystem infrastructure like bridges and oracles are secured by restaked BTC. Through an innovative CeDeFi framework, BounceBit empowers BTC holders to earn yield across multiple networks.
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