BounceBit is a crypto project that merges centralized finance (CeFi) and decentralized finance (DeFi) into a hybrid model known as CeDeFi. The aim is to democratize high-yield opportunities traditionally available to large institutions by making them accessible to retail investors and smaller entities.
The project operates using a dual-token staking system involving its native token, BB, and Bitcoin (BTC). This allows users to earn staking rewards and participate in various yield-generating activities on the BounceBit Chain, a PoS Layer 1 blockchain leveraging Bitcoin's security with full EVM compatibility. Key components include Liquidity Custody Tokens (LCTs), which enable users to earn interest through both CeFi and DeFi channels.
In early 2024, BounceBit secured $6 million in funding from Blockchain Capital and Breyer Capital to develop its BTC restaking infrastructure. The project enhances Bitcoin's utility by allowing additional rewards through restaking mechanisms without altering Bitcoin's base protocol.