Confirming the airdrop, why is the BTC staking narrative of BounceBit so attractive?

Original Author: Meteor, ChainCatcher

Original Editor: Marco, ChainCatcher

In 2024, the staking market has seen a surge in popularity, and so far, Ethereum remains the main battlefield for the staking narrative, primarily due to the "staking" concept pioneer EigenLayer on Ethereum. According to DeFiLlama data, as of the time of writing, the TVL of Ethereum's liquid staking protocols exceeds $6.5 billion. However, the cryptocurrency industry has always been characterized by cycles and imitative narratives. With Ethereum's staking being so hot, bringing users more extra income, Bitcoin naturally needs its own staking infrastructure to improve the asset utilization of BTC, unlock greater potential for BTC, and increase profitability. Today, we will introduce BounceBit, the first native staking chain in the BTC ecosystem.

Unlocking the Maximum Profit Potential of BTC: What BounceBit Has Done

Bitcoin L2 in 2024 is undoubtedly a key narrative, with many projects striving to expand BTC's capacity. Various methods and innovative frameworks have emerged for Bitcoin L2. BounceBit has not followed the trend to position itself as a Bitcoin L2 but has instead introduced a paradigm shift from L2 to L1, positioning itself as an asset-driven PoS L1.

The original intention behind BounceBit's design is to address the issue of insufficient yields for BTC holders. BounceBit provides three mechanisms to support BTC holders in earning BTC holding rewards:

Staking

DeFi Ecosystem (BounceClub)

Arbitrage BTC Strategies

Staking Nodes

BounceBit ensures network security through staking BTC and the native BounceBit token (BB), with auditing support for secure Bitcoin storage provided by CEFFU (formerly Binance Custody) and Mainnet Digital. The PoS mechanism of this system leverages the native security of BTC and introduces a dual-token staking system with full EVM compatibility. BounceBit's PoS algorithm selects 25 staking validators from each of the two token categories. Holders of BTC or BounceBit tokens can delegate their assets to validators to earn staking rewards and maintain network security.

BounceClub

BounceClub is BounceBit's on-chain DeFi ecosystem, inspired by the technology and application experience integration of Apple's App Store. BounceBit founder Jack Bounce once stated, "Traditional blockchains are boring; Steve Jobs' Apple Store business model set a standard for the Web2 industry. BounceBit is adopting a similar model inspired by Apple to set standards for Web3."

BounceClub can be seen as a hub for BounceBit, allowing users to design, enable, and experience applications (dApps) within the BTC ecosystem. Users can customize their Web3 projects according to their needs by selecting various tools and components from the BounceBit App Store. Users can actively participate in the BounceBit ecosystem through activities such as LP, liquidity mining, participating in the Launchpad, or governance mechanisms, earning rewards in the form of trading fees, governance tokens, or other incentives aimed at rewarding ecosystem participation.

Currently, the BounceClub App Store includes projects such as: Bitstaking (staking token application), Bitswap (AMM Dex), Bitstable (lending protocol), Bitleverage (contracts), etc. Users can create their own BounceClub or join others' Clubs to interact and provide activity.

CeFi + DeFi Yield Integration

BounceBit is listed as one of the most important parts of the staking track because the project can simultaneously generate yields from both CeFi and DeFi. Users can earn original CeFi yields while staking BTC using LSD and participating in on-chain mining, a process referred to as "re-staking."

The ecosystem provides Bitcoin holders with three types of yields: original CeFi yields, node operation rewards for staking BTC on the BounceBit chain, and opportunity yields from participating in on-chain applications and the Bounce Launchpad.

Taking the BNB Chain as an example, the general process is: deposit BTC (BTCB) from BNB into BounceBit; the deposited BTCB will then be transferred to Ceffu + Mainnet Digital custody (integrating CeFi framework to obtain CeFi yields and funding rate arbitrage). After participating, users will receive BTCB and LSD tokens as rewards; cross the LSD tokens into the BounceBit chain and integrate them into the BounceBit DeFi ecosystem to participate in mining, LP, staking, and other activities.

Note: The TVL deposited by users is securely managed by Mainnet Digital's regulated custody services to ensure compliance and security. These assets are then mirrored through Ceffu's MirrorX service to maintain asset transparency.

BounceBit Investors

BounceBit announced the completion of a $6 million seed round financing at the end of February, with investors including Blockchain Capital, Breyer Capital, CMS Holdings, Bankless Ventures, NGC Ventures, Matrixport Ventures, DeFiance Capital, OKX Ventures, Bixin Ventures, and HTX Ventures. Individual investors include EigenLayer Chief Strategy Officer Calvin Liu and Anchorage Digital co-founder & CEO Nathan McCauley.

BounceBit Token Economics and Roadmap

BounceBit's PoS introduces a dual-token system, consisting of the native token BB and BBTC.

BB

The native token of BounceBit is called BB. The total supply cap of BB is 2.1 billion tokens, corresponding to Bitcoin's total supply of 21 million. A portion of the total supply will become liquid at the mainnet launch, while the remaining tokens will be allocated as future staking rewards or unlocked over the coming years.

The uses of BB include:

• Participating in BounceBit's PoS staking mechanism;
• Being paid as staking rewards to validators maintaining network security;
• Serving as gas for transactions and executing contracts on BounceBit;
• Acting as a liquidity and utility token on the BounceBit platform;
• Being used in various applications and infrastructures as a medium of exchange or value storage;
• Having features of composability, interoperability, and cross-chain compatibility;
• Participating in on-chain governance, such as protocol upgrade voting.

The total supply of BB remains at 2.1 billion, and as more users join the network, the number of tokens will be adjusted based on the crypto-economic activities on the platform. In the future, various token burn mechanisms may be introduced through platform governance.

BBTC

BBTC is the wrapped version of BTC on BounceBit, allowing users to bridge native Bitcoin and BTC from various EVM-compatible chains into the BounceBit ecosystem. The bridging is achieved through the BTC Bridge, and the bridged tokens are referred to as BBTC on BounceBit. Additionally, BTCB on Binance Smart Chain (BEP20) and WBTC on Ethereum can also be bridged to BounceBit.

BounceBit will support all types of BTC assets in the future.

BounceBit itself supports liquid staking of BBTC, allowing BBTC holders to stake their funds with node operators and receive liquid staking derivatives (LSD) as proof. This LSD can be reinjected into infrastructure such as the BTC Bridge, oracles, and data availability layers.

When performing liquid staking on BounceBit, BTC and BB are preferred for staking to ensure network security. After staking, users will receive the corresponding LSD, which currently includes:

• stBB, the LSD of BB tokens
• stBBTC, the LSD of BBTC tokens.

The BounceBit roadmap indicates that it is currently in the testnet phase and will launch the mainnet in April.

BounceBit Interaction

BounceBit interaction is currently divided into two categories: first, entering the App through bridging (Early Access) to increase points; second, interacting with the BounceBit testnet (Join BounceClub).

BNB Chain and Ethereum Bridging

Click to enter the BounceBit official website, select Ethereum or BNB Chain, and deposit a minimum of 0.00015 BTC (about $10). Click Approve to authorize the BTCB transaction and confirm.

After the deposit is completed, users can click Hallway Claim to claim platform points (points can be claimed based on the hourglass time, normally once every 24 hours), which are likely related to airdrop eligibility.

In addition to the minimum deposit of $10, BounceBit also has premium features. Click Premium, and you can see some projects on the platform with higher staking returns. Premium features require a deposit of at least 0.1 BTC or 1000 USDT.

Author's BounceBit official website invitation code, feel free to use:

https://bouncebit.io?code=OBH1S

https://bouncebit.io?code=5WXYB

https://bouncebit.io?code=3MLUF

https://bouncebit.io?code=XT7CE

https://bouncebit.io?code=F1OKF

https://bouncebit.io?code=Z2RIL

BounceBit Testnet Interaction

Click to enter BounceBit Official DC, verify, and then click on the left side testnet-faucet to enter your wallet address to receive BB or BBTC test tokens (1 BB or BBTC);

After receiving the test tokens, enter the (BounceClub) App website, where users can choose to click to create a Club (edit their Club information; creating requires BB Gas) or join other people's created Clubs.

Subsequently, users can add dApp applications from the BounceBit App Store to BounceClub and interact with them. Currently, the App Store includes AMM Dex, lending, staking, and other apps.

Taking Bitswap as an example, after adding the App, users can customize trading token pairs for Bitswap (the wallet needs to have sufficient amounts and types of test tokens to create pools), and then conduct test token interactions to increase testnet activity.

Finally, users can stake test tokens by clicking into the BBScan website and connecting their wallets to participate in BB or BBTC staking activities.

Conclusion

BounceBit has been online for no more than 7 weeks, and the website currently shows that BounceBit's TVL exceeds $670 million, with over 57,000 users.

As the first Bitcoin staking chain; backed by renowned institutions like Blockchain Capital, Bankless Ventures, and OKX Ventures; supported by industry leaders like EigenLayer's CEO; unlocking triple yields for BTC holders; and with airdrop expectations, all these titles come together, making BounceBit worth participating in as early adopters in its ecosystem.