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The Bitcoin ecosystem is booming, and BounceBit is emerging as a prominent player.
With the windfall brought by Bitcoin's fame, the market is now focusing on Bitcoin-related public chains, including layer 2 networks/sidechains, and more. Ethereum's market cap itself stands at $3.5 trillion, while its associated layer 2 and DApp tokens have a market cap exceeding a trillion dollars. As the bull market continues, numerous ecosystem projects are emerging, and market caps are expected to multiply.
In comparison, Bitcoin's market cap has already reached $1 trillion, but the combined market cap of related projects is only in the billions. This suggests that there is still ample room for growth in the overall ecosystem, with the potential emergence of projects worth tens of billions or even hundreds of billions of dollars.
However, due to limitations in performance and smart contract support, the Bitcoin main chain cannot fully support the ecosystem's explosive growth. Therefore, much hope is placed on Bitcoin-related networks, including layer 2/sidechains. Following the success of Ethereum, numerous projects have emerged, each vying for dominance. After all, the leading layer 2 networks on Ethereum have market caps in the tens of billions of dollars.
Today, three prominent projects have emerged, one of which is BounceBit. Created by the Bounce team, BounceBit is the first public chain dedicated to BTC heavy staking.
Basic Introduction to BounceBit
BounceBit's most significant feature is its unique double PoS staking system, which ensures security by staking BTC tokens and BounceBit's native tokens. BounceBit's architecture is fully compatible with the Ethereum Virtual Machine (EVM) and Solidity language, meaning a large number of ETH projects can seamlessly migrate to the BTC ecosystem.
The security of BTC assets is a significant concern, directly affecting the participation of BTC whales. Unlike Ethereum's smart contract code vulnerabilities, BTC's security issues stem from the fact that it does not support smart contracts itself. Many second-layer solutions involve transferring assets to multi-signature wallets. However, fundamentally, project parties have the authority to transfer users' assets directly. Although large project parties should be trustworthy, BTC whales will undoubtedly have concerns, affecting overall asset participation. BounceBit offers a new solution by adopting CeFi custody supported by Mainnet Digital and Ceffu. It is the only institutional custody partner of Binance. By adopting the asset management method of centralized exchanges, it ensures the security of BTC assets.
At the end of January, BounceBit launched the Water Margin event, similar to the Blast deposit model. Two networks accept deposits: Ethereum and BNB chains. Supported tokens on the Ethereum network include WBTC, Auction, Mubi, and DAII. So far, there is already a TVL of $450 million.
BTC Restake Mechanism
BounceBit's core innovation is the BTC Restake mechanism, which opens up new avenues for increasing the value of Bitcoin assets. This mechanism covers three levels of asset management, providing Bitcoin holders with a multi-dimensional revenue ecosystem.
First, we have the basic layer of Bitcoin assets. Here, Bitcoin itself and tokens such as BTCB and WBTC on the BNBChain can be stored in Centralized Financial (CeFi) custody services supported by Mainnet Digital and Ceffu. The Mirror X technology provided by Ceffu ensures on-chain traceability and regular financial audits to maintain system integrity and trustworthiness.
Secondly, the custody of Bitcoin can be converted into wrapped versions on the BounceBit chain. Here, Bitcoin becomes the so-called bounceBTC, which can be delegated to network node operators in exchange for stBTC vouchers or directly used for various applications.
The third level is the re-staking of stBTC. Users can re-stake stBTC on other SSCs, such as sidechains, bridges, and oracles, or directly use them for various applications in the ecosystem. BounceBit chain is fully compatible with the Ethereum Virtual Machine (EVM) and Solidity programming language, making it easy for developers to migrate their projects to this new ecosystem.
Triple Returns
From the above description, it can be seen that BounceBit generates CeFi and DeFi returns in parallel. Users can earn CeFi returns while using LSD for BTC staking and on-chain mining, a process known as "re-staking" in Bitcoin. The ecosystem provides Bitcoin holders with triple returns: original CeFi returns, node operator rewards for staking BTC on BounceBit chain, and opportunities to participate in on-chain applications and Bounce Launchpad.
Double PoS Mechanism
BounceBit also adopts a unique double PoS (Proof of Stake) mechanism, emphasizing the importance of Bitcoin asset-driven infrastructure. Unlike relying on existing second-layer solutions, BounceBit, as an independent PoS layer 1 network, protects network security by staking Bitcoin and BounceBit's native tokens through validators. This double-token PoS architecture not only enhances network security but also increases participant engagement.
BounceBit's PoS architecture consists of 50 validators, divided evenly into two parts: one for BTC stakers and the other for BounceBit token stakers. This dual-token system not only expands the stakeholder base but also weaves an additional layer of resilience and security into the network's consensus structure. By establishing a dual-token security system, BounceBit enhances the network's intrinsic value by actively participating in network validation and revenue generation.
BounceBox
BounceBox is an on-chain Web3 domain that serves as a central hub, allowing users to customize Web3 projects according to their specific needs by selecting various tools and components from the BounceBit app store. It enables users to design, launch, and enjoy decentralized applications (dApps) in the BTC ecosystem.
BounceBox includes a comprehensive repository of Web3 components such as decentralized exchanges (DeXs), Initial DEX Offerings (IDOs), and markets, all of which undergo security and efficiency reviews. Additionally, it includes auxiliary tools for bot prevention and artificial intelligence for customer service, along with necessary security plugins. |
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Post time 25-4-2024 13:28:32