Introduction

BounceBit is a new crypto project focused on making Bitcoin more useful in the decentralized finance (DeFi) world. While Bitcoin is the largest and most recognized cryptocurrency, it’s mostly used as a store of value and is not widely integrated into DeFi platforms. BounceBit changes that by creating a system where Bitcoin holders can earn rewards through staking and restaking, similar to what happens on Ethereum and other proof-of-stake chains.

The platform combines elements of centralized finance (CeFi) with decentralized tools, forming what’s known as CeDeFi (Centralized-Enabled Decentralized Finance). This approach aims to offer users both security and control, while allowing institutions to participate more easily in crypto products like staking, yield farming, and structured investments.

BounceBit operates with a dual-token system. It supports its own token (BB) and a Bitcoin-pegged token (BBTC), letting users stake both to help secure the network and earn yield. It also allows for advanced DeFi strategies, like restaking, while maintaining connections with real-world financial systems.

What is BounceBit

BounceBit is a Layer 1 blockchain built to increase the utility of Bitcoin in decentralized finance. It allows Bitcoin holders to earn yield through staking and restaking without giving up custody of their assets. The network supports both BBTC (a Bitcoin-backed token) and BB (BounceBit’s native token), which are used in its dual-token Proof-of-Stake (PoS) system.

BounceBit’s main goal is to bridge the gap between Bitcoin and modern DeFi applications. It does this by offering a restaking infrastructure that supports Bitcoin, something that hasn’t been widely available. The platform is also EVM-compatible, meaning developers can deploy smart contracts just like they would on Ethereum.

Unlike most DeFi platforms that rely purely on decentralized systems, BounceBit uses a CeDeFi model. This combines centralized custody and regulatory safeguards with decentralized protocols and yield strategies. Custodians hold user funds, but users can still access DeFi tools in a secure and permissioned environment. This setup is designed to attract both retail users and institutions.

Key components of BounceBit include:

• Restaking infrastructure for Bitcoin and BB tokens.
• Yield generation strategies, including liquid staking and validator-based rewards.
• EVM compatibility, allowing easy integration with existing DeFi protocols.
• Support for real-world assets (RWAs) and structured financial products.

History of BounceBit, Origins, and Key Persons

BounceBit was founded in 2023 by Jack Lu, a seasoned entrepreneur with a background in both traditional finance and blockchain technology. Before establishing BounceBit, Lu co-founded Bounce Finance in 2020 and served as a partner at NGC Ventures, a notable crypto investment firm. He holds a degree in economics and quantitative economics from Reed College.

The inception of BounceBit was driven by the need to enhance Bitcoin’s utility in the decentralized finance (DeFi) ecosystem. Recognizing that Bitcoin primarily serves as a store of value with limited DeFi integration, Lu aimed to create a platform that allows Bitcoin holders to participate in staking and yield-generating activities without compromising asset custody.

In February 2024, BounceBit secured a $6 million seed funding round led by Blockchain Capital and Breyer Capital. The round also saw participation from prominent investors, including dao5, CMS Holdings, Bankless Ventures, NGC Ventures, Matrixport Ventures, Primitive Ventures, Arcane Group, IDG Capital, Bixin Ventures, Nomad Capital, Geekcartel, DeFiance Capital, General Mining Research, OKX Ventures, Mirana Ventures, HTX Ventures, and MEXC Ventures.

Additionally, BounceBit attracted investments from Binance Labs, the venture capital arm of Binance, which supports projects that expand the capabilities of Bitcoin beyond traditional storage of value. The platform also garnered support from angel investors such as Nathan from Anchorage Digital, Calvin and Jessy from Eigenlayer, Kevin and Ashwin from Brevan Howard, and notable crypto influencers like RookieXBT and Pentoshi.

Headquartered in Singapore, BounceBit has rapidly developed its CeDeFi infrastructure, aiming to bridge the gap between centralized and decentralized finance by enabling Bitcoin restaking and offering institutional-grade yield products.

How Does BounceBit Work?

BounceBit works by allowing users to stake Bitcoin and its native token (BB) in a secure and regulated environment while still accessing DeFi strategies. The system is built on a dual-token Proof-of-Stake (PoS) blockchain that uses both BBTC (a Bitcoin-backed token) and BB to secure the network and reward participants.

Bitcoin Onboarding and BBTC

Users deposit their Bitcoin into BounceBit through a regulated custodian. In return, they receive BBTC, a token pegged 1:1 to Bitcoin. This token can be used across the BounceBit ecosystem without needing to wrap BTC on external platforms. The custody process ensures security while enabling DeFi-style functionality.

Staking and Restaking

Once users hold BBTC and/or BB tokens, they can stake these assets to help secure the BounceBit chain. BounceBit validators are selected based on the amount of both BB and BBTC staked. Users who delegate their tokens to these validators receive rewards.

BounceBit also offers restaking, which means users can use their staked assets across multiple protocols to earn additional yield—without unbonding or removing them from the original staking position. This increases capital efficiency.

Validator Incentives and Security

Validators on the network are rewarded for securing the chain and participating in protocol operations. They are required to stake both BBTC and BB to align economic incentives. The network has built-in slashing mechanisms and reputation scores to reduce the risk of dishonest validator behavior.

EVM Compatibility

BounceBit is fully compatible with the Ethereum Virtual Machine (EVM). Developers can deploy smart contracts and create applications using familiar tools from the Ethereum ecosystem. This allows easier integration of existing DeFi protocols onto BounceBit.

CeDeFi Infrastructure

Funds deposited on BounceBit are held by licensed custodians. While users interact with decentralized applications, the underlying assets are kept in secure, compliant environments. This model is designed to support institutional involvement and provide better risk control for everyday users.

Structured Products and Yield Strategies

BounceBit partners with financial service providers to offer pre-built yield products like fixed-income vaults, BTC-denominated funds, and other on-chain structured offerings. These strategies are aimed at helping users earn consistent returns without needing to actively manage their portfolios.

Key Features of BounceBit

BounceBit introduces several features that are designed to make Bitcoin more functional within the broader DeFi ecosystem. These features are aimed at both retail users and institutions, focusing on security, yield, and accessibility.

Dual-Token Proof-of-Stake (PoS) Mechanism

BounceBit uses a PoS system that involves two tokens: BB (native token) and BBTC (Bitcoin-pegged token). Validators are required to stake both tokens to secure the network. This mechanism ensures that Bitcoin can participate in consensus, which is typically limited to native tokens on other blockchains.

Bitcoin Restaking Infrastructure

One of BounceBit’s core innovations is allowing users to restake Bitcoin. After users deposit Bitcoin and receive BBTC, they can stake it along with BB tokens. These staked assets can also be restaked across supported protocols, increasing yield without removing them from the original stake. This improves capital efficiency and introduces new DeFi use cases for Bitcoin.

EVM Compatibility

BounceBit supports Ethereum Virtual Machine (EVM), which allows developers to build and deploy smart contracts using Ethereum’s development tools. This makes it easier to migrate or integrate existing DeFi applications, enabling BounceBit to benefit from Ethereum’s mature developer ecosystem.

CeDeFi Structure

BounceBit operates under a CeDeFi model (Centralized-Enabled DeFi), where asset custody is managed by licensed custodians. Users interact with decentralized applications, but their funds remain securely stored. This setup makes it easier for institutions to adopt DeFi strategies while meeting compliance requirements.

Institutional-Grade Yield Products

The platform integrates structured financial products such as BTC-denominated yield vaults, fixed income strategies, and other investment tools. These offerings allow users to earn passive income on their crypto assets with lower risk and without needing to manage DeFi protocols manually.

Slashing and Validator Reputation System

To maintain security and trust, BounceBit uses slashing mechanisms for validators who act maliciously or fail to perform their duties. It also tracks validator performance through a reputation system, encouraging long-term good behavior and penalizing poor performance.

Support for Real-World Assets (RWAs)

BounceBit is designed to support tokenized real-world assets in the future. This means users could gain exposure to assets like bonds or equities within the same environment where they stake Bitcoin. This adds diversification to the ecosystem.

Interoperability and Expansion

The BounceBit network is built to support cross-chain interactions, particularly around Bitcoin. The use of BBTC simplifies Bitcoin’s use in smart contracts and DeFi protocols, making it easier for developers and users to build applications that rely on BTC liquidity.

BounceBit Ecosystem

BounceBit is a CeDeFi (Centralized-Enabled Decentralized Finance) platform designed to enhance Bitcoin’s utility by integrating it into decentralized finance applications. The ecosystem comprises three primary components: BounceBit Portal, BounceBit Chain, and BounceClub.

BounceBit Portal

The BounceBit Portal serves as the user interface for accessing various financial products and services within the ecosystem. Key features include:

• Fixed Yield Products: Offering stable returns on BTC and USDT through structured financial products.
• Lending Services: Implementing over-collateralized lending and borrowing mechanisms to enhance liquidity.
• Structured Products: Introducing complex financial instruments tailored to specific investor needs, such as Dual Investment and SharkFin strategies.
• Real-World Asset Integration: Collaborating with partners like Hashnote Labs and Google Cloud to incorporate tokenized assets, including U.S. Treasury bills, into the platform.

BounceBit Chain

BounceBit Chain is a dual-token Proof-of-Stake (PoS) Layer 1 blockchain, secured by BTC and BB tokens, with full Ethereum Virtual Machine (EVM) compatibility. Key aspects include:

• Dual-Asset PoS Mechanism: Validators stake both BBTC (Bitcoin-pegged token) and BB to secure the network.
• EVM Compatibility: Allows developers to deploy Ethereum-compatible smart contracts, facilitating seamless integration with existing DeFi applications.
• High Throughput and Scalability: Optimized for rapid transaction processing and low-cost operations.
• Cross-Chain Interoperability: Through partnerships with LayerZero and other technologies, BounceBit Chain enables assets and data to move seamlessly between chains.

BounceClub

BounceClub functions as the ecosystem layer for BounceBit, providing DeFi infrastructure and specialized trading tools.

• DEX (Swap): A basic decentralized exchange providing liquidity infrastructure for BounceBit assets.
• Quanto Trading Market: A derivatives-focused trading system offering stock and index trading support, cross-asset trading capabilities, and leverage options ranging from 2x to 200x.
• Meme Token Launchpad: Infrastructure for community token deployment, implementing structured launch processes and bonding curve mechanisms.
• AI Agent Integration: A development platform for trading automation, allowing customizable AI agent creation and deployment, with planned implementation of DeFAI agents for yield strategy optimization.

Is BB a Good Investment?

The question of whether BB, the native token of BounceBit, is a good investment depends on how one weighs current market trends, project fundamentals, and long-term potential. Like most early-stage Layer 1 tokens, BB carries both opportunities and risks.

Since its Token Generation Event (TGE), the price of BB has declined by around 67%. For some, this drop might signal caution. It reflects broader market volatility and perhaps uncertainty around BounceBit’s immediate traction. However, others may see this as a potential entry point, suggesting the token could be undervalued relative to its longer-term prospects.

BounceBit has received funding from major firms like Binance Labs, Blockchain Capital, and Breyer Capital. These names bring a level of credibility, and their involvement could indicate confidence in the project’s direction. Institutional support may also help ensure better execution and broader adoption over time.

The token’s price performance so far may reflect a lack of retail confidence or slower-than-expected ecosystem growth. While BounceBit has an ambitious roadmap – including real-world asset integration and institutional-grade DeFi tools – these features are still in development. Delays or underwhelming adoption could affect both BB’s utility and market value.

Furthermore, like any crypto asset, BB is subject to regulatory risk, technical challenges, and market sentiment. The early-stage nature of the project means there’s limited historical data to analyze performance trends, which could make it harder for conservative investors to assess risk accurately.

How Can You Own BB?

There are a few ways to acquire BB, the native token of the BounceBit blockchain. These methods include token purchases on exchanges, participation in the ecosystem, and staking-related rewards.

BB is listed on several centralized exchanges. As of its mainnet launch in May 2024, BB became available for trading on platforms like gate.io. To buy BB, create an account and deposit funds (USDT, BTC, or another supported pair). Search for the BB trading pair (e.g., BB/USDT) and execute a buy order.

You can also earn BB by staking in the BounceBit ecosystem. Users who delegate BB or BBTC to validators receive staking rewards in BB. This provides a way to accumulate tokens passively, without purchasing directly.

BounceBit occasionally runs ecosystem campaigns, testnet events, and airdrops. Users who participate in these early activities may receive BB as a reward. These opportunities are usually announced through BounceBit’s official social media or community platforms like Discord and Twitter.

Tokenomics of BB

• Total Supply: 2.1 billion BB tokens

Token Distribution

The BB token is distributed across various categories to ensure network development, incentivize community participation, and attract institutional backing. The initial breakdown is:

• Community & Ecosystem: 31.5%
• Investors (Seed + Private Rounds): 16.5%
• Team and Advisors: 20%
• Treasury: 20%
• Strategic Reserve: 10%
• Public Sale / Launch: 2%

Vesting Schedules

• Team and Advisors: Typically subject to a 1-year cliff followed by monthly unlocks over 3–4 years.
• Investors: Structured to unlock gradually, reducing immediate sell pressure.
• Community Incentives: Distributed continuously to support engagement and usage. \

Exact timelines are published in the BounceBit documentation.

Token Utility

BB has multiple functions within the BounceBit network:

• Staking: BB is staked (alongside BBTC) to secure the network and validate transactions.
• Restaking: Users can restake BB across partner protocols for additional yield.
• Gas Fees: BB is used to pay for transaction and smart contract execution fees.
• Governance: BB holders can vote on protocol changes, upgrades, and key decisions.
• Validator Collateral: Validators are required to stake BB, which ensures commitment and aligns incentives.

Inflation and Supply Emissions

BB has an inflationary model to reward validators and delegators. However, emissions decrease over time to reduce dilution. The tokenomics aim to strike a balance between rewarding early adopters and maintaining long-term value.

Roadmap of BounceBit

BounceBit’s focus for 2025 includes:

• BounceBit Prime Launch: Introducing a service that combines CeDeFi with RWAs to provide institutional investors with efficient settlement mechanisms.
• Expansion into RWA Credit Markets: Developing settlement and clearing systems to facilitate growth in the RWA credit sector.
• Institutional Partnerships: Collaborating with major financial entities to integrate tokenized assets and expand the platform’s reach.

By adhering to this roadmap, BounceBit aims to solidify its position in the CeDeFi space, offering innovative solutions that cater to both retail and institutional participants.

Conclusion

BounceBit is a Layer 1 blockchain project designed to expand the utility of Bitcoin in decentralized finance. By enabling Bitcoin restaking and offering a dual-token Proof-of-Stake model, it provides Bitcoin holders with new ways to earn yield and participate in DeFi without losing custody of their assets.

The platform combines centralized custody with decentralized tools, using a CeDeFi model that aims to balance regulatory compliance with DeFi accessibility. Its EVM compatibility makes it easy for developers to build on the network, while its support for structured products and real-world asset integration makes it appealing to both retail and institutional users.

With a clearly defined roadmap, strong investor backing, and ongoing development of products like BounceBit Prime, the platform is positioning itself to become a key player in Bitcoin-enabled DeFi. However, as with any emerging project, future success depends on adoption, network security, and continued execution.

For users and investors, BounceBit offers a new way to engage with Bitcoin beyond holding and trading—by staking, earning yield, and participating in a broader financial ecosystem.