BounceBit chooses to introduce a hybrid PoS mechanism at the consensus layer and introduces a dual-token staking model to ensure network security.

Written by: Deep Tide TechFlow

There are various ecological applications surrounding Bitcoin, but how can Bitcoin itself generate income?

For example, if you have idle BTC, how can you maximize its earnings?

As people's interest in BTC surges, it also brings new demand to BTC. BounceBit is here to solve the problem of the lack of passive income for BTC - the first native BTC staking chain, allowing users to stake idle BTC and earn income.

In the project background, BounceBit has also received support from Binance Custody (CEFFU), OKX Venture, Breyer Capital, and Mainnet Digital.

What is BounceBit?

As the most decentralized asset in the current crypto industry, BTC lacks real opportunities for utilization on existing public chains. BounceBit chooses to introduce a hybrid PoS mechanism at the consensus layer and introduces a dual-token staking model (Bitcoin and BounceBit native tokens) to ensure network security. At the same time, BounceBit's execution layer will achieve EVM compatibility to accelerate the migration of existing DeFi liquidity to the Bitcoin ecosystem.

In addition, BounceBit also introduces an innovative BTC mirroring mechanism, allowing Bitcoin holders to earn income on-chain through PoS and DeFi, and off-chain through CeFi.

The working principle is as follows:

Users first deposit BTC into Binance, then extract BTCB to the BNB chain, and deposit BTCB into Ceffu (Binance Custody) through the BounceBit website. Users with more than 1 BTC can also choose to have their assets managed by a trading team that executes the delta neutral arbitrage strategy. In addition, users will receive BTCB LSD, also known as BounceBTC, which can be staked with the BounceBit token at validator nodes to earn BTC income.

A long-standing question is where the income from staking BTC comes from. BounceBit's official documentation provides the answer:

• CeFi rewards provided by Mainnet Digital and CEFFU's regulatory custody and various asset management services;

• Node operation rewards provided by staking and PoS mining;

• DeFi income from BounceBit's ecological applications.

Currently, users can make deposits on two networks, Ethereum and BNB Chain. On the Ethereum network, supported tokens include WBTC, Auction, Mubi, and DAI. The BNB Chain only supports the BTCB token. All deposited funds will be available for withdrawal when the BounceBit mainnet goes live in May 2024.

BounceBit Token and Airdrop

As mentioned earlier, BounceBit will launch a native token to protect BounceBit together with staking BTC validators and earn income. Furthermore, BounceBit mentions that native token holders will also receive additional benefits through income distribution and governance. Airdrop is one of the ways for people to obtain BounceBit tokens early on. In addition to the initial airdrop for early holders of $Auction, BounceBit has launched a points activity to reward early participants: Point Paradise.

Users can earn points on BounceBit in the following ways, and the number of points depends on:

• The amount of assets deposited, supporting WBTC, Auction, Mubi, DAII, and BTCB.

• Inviting friends to join: the amount deposited by the inviter and invitee.

• Within each 24-hour period, if you and your invitee reach the official designated deposit milestone (0.1 BTC), you can get a chance to draw Boost and Swift cards. The Boost card can help users earn more points at the end of each time period, while the Swift card shortens the time period, allowing participants to quickly enter the next round and earn points faster.

BounceBit Roadmap

• Early access (now): Stake $BTCB, $WBTC, $AUCTION, $MUBI, $DAII, and earn points;

• Mainnet launch (April 23);

• Airdrop (May): BounceBit points can be exchanged for BounceBit tokens, and assets can be withdrawn.

Official Website｜Official Twitter

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