Original - Odaily

Author - Nan Zhi

Bounce Brand announced on the support.

What is BounceBit

BounceBit is a Bitcoin pledge chain based on the PoS mechanism. Its goal is to create a powerful smart contract execution environment for Bitcoin.BounceBit emphasizes that it is not a Layer 2 built on the Bitcoin blockchain, but a Layer 1 ecosystem using the PoS mechanism.

BounceBit has EVM compatibility and native BTC security and compatibility, and recognizes and incorporates assets such as BTCB on the BNB chain and WBTC on Ethereum, diversifying BTCs use cases, expanding ecological participation, and thus enriching the entire BTC asset class.

BounceBit introduces a dual-token staking system,Validators need to hold both BounceBit’s native token (yet to be named) and BTC.Benefits to BounceBit holders include income distribution and governance rights.

BounceBits security is provided by the native BTC network and the CeFi Foundation, which is implemented through regulated custody by Mainnet Digital and Binance institutional custody organization Ceffu. Its operation process is as follows:

(Odaily note: Ceffu states on its website that it is the “only institutional custody partner of the Binance exchange.” Last year, U.S. regulators described Ceffu as a “mysterious entity associated with Binance.”)

• Users deposit BTC to Binance and then withdraw to BNB Chain, the tokens will be automatically converted to BTCB

• Deposit BTCB via BounceBit official link

• BTCB will be transferred to the regulated entity Mainnet Digital for custody, and users will receive BTCB and LSD token incentives

• Users can use LSD tokens to participate in a range of asset management services

• Users can choose to cross-chain LSD tokens to the BounceBit chain to participate in ecological activities

• Users can also stake LSD tokens to validating nodes

Bitcoin interest earning mechanism

In the Bitcoin ecosystem, asset interest generation is a unique challenge, which is significantly different from chains such as Ethereum. When BTC is restricted to multi-signature wallets, the current mainstream Bitcoin protocol cannot allow it to generate returns. BounceBit aims to build a decentralized validator network through the PoS mechanism and transform BTC from a passive asset to an active interest-earning asset. BounceBit introduces three types of benefits for users:

• CeFi: Earn rewards for regulated custody and various asset management services through Mainnet Digital and Binance Mirror;

• Node operation rewards for staking and PoS mining;

• DeFi yield derived from BounceBit ecosystem applications.

BounceBox

In addition to the interest-generating mechanism, BounceBox is another key element of BounceBit.BounceBox is an application building and distribution platform that enables users to quickly design, launch and monitor DApps.BounceBox simplifies the DApp development process through intuitive design and rich component supply, including decentralized exchanges (DEX), IDO products and trading markets, aiming to enable users with minimal technical knowledge to easily build DApps.

Water Margin TVL event

Currently, BounceBit has launched a TVL activity called THE WATER MARGIN, through which users can receive BounceBit points rewards. Users can stake BTCB on BNB Chain and WBTC, AUCTION, MUBI and DAII on Ethereum. All deposited funds will be available for withdrawal when the BounceBit mainnet is launched in May 2024.

This activity is similar to Blast, and its points earning rules are as follows:

• Earn points based on the dollar amount deposited;

• Earn points based on invitations and the dollar amount deposited by the invitee;

• For directly invited teams, each 0.1 BTC deposit will earn each referral a Boost lottery entry. You may get a Swift card or a Boost card that accelerates hourglass time. The Boost card is divided into R, SR, and SSR levels and can be rewarded with additional points.

route map

BounceBit will be launched on the test network in March, on the main network on April 23, and will be airdropped in May. BounceBit points redemption and asset withdrawal will be open at the same time.

summary

BounceBits interest-generating mechanism and low-code development are relatively low-innovation, but BounceBit participating institutions and Bounce Brand have been promoting and supporting BTCB, which constitutes a certain degree of background endorsement by Binance. TVL exceeded 10 million US dollars in 10 minutes after going online. Overall, It has certain participation value.