BounceBit (BB): Maximizing Yields From Your Idle BTC Assets

Though Bitcoin is one of the oldest and most iconic cryptocurrencies, it doesn't offer all the utility of modern chains. One of the biggest challenges for Bitcoin investors is that its blockchain doesn't have a native way of staking coins to earn passive income. BounceBit hopes to solve this problem with a novel staking solution. How does BounceBit provide Bitcoin users with staking rewards and liquid staking for tokens? Explore this guide to see how BounceBit’s intriguing program works. 

Key Takeaways:

• BounceBit is a Bitcoin staking protocol that blends DeFi and CeFi yield mechanisms so that investors can earn yield through a variety of methods.

• Looking to trade BounceBit tokens? Bybit now offers the BB/USDT Spot trading pair and BBUSDT Perpetual contracts. To celebrate this listing, Bybit is holding two exclusive events where you can earn a share of the 280,000 BB prize pool!

What Is BounceBit?

BounceBit is a Bitcoin staking protocol. Its blockchain network blends decentralized finance (DeFi) and centralized finance (CeFi) yield mechanisms so investors can earn yield through a variety of methods. The BounceBit ecosystem also includes a web3 universe for developing new projects that are automatically integrated into its platform.

History of BounceBit

BounceBit was founded by Jack Lu in 2024. Lu previously co-founded Bounce, a decentralized auction house, and has also worked at an investment company called NGC Ventures. With a background in blockchain’s consensus mechanisms and real-world implications, Lu became interested in both traditional and web3 investments. He realized there was a need for more effective Bitcoin staking systems, and decided to combine his past areas of expertise into a single, unified system. 

What Does BounceBit Aim to Achieve?

BounceBit’s primary goal is to offer users a way to stake Bitcoin. Many other blockchains already offer crypto enthusiasts the choice of temporarily locking their tokens in order to earn staking rewards. Bitcoin doesn't have this feature built-in, but staking is in high demand, since it suits the conservative investment preferences of many people with Bitcoin crypto holdings. BounceBit aims to solve this dilemma in order to help Bitcoin holders earn passive income.

Its staking services are somewhat different from other platforms’. Instead of functioning as a Layer 2 that relies on the Bitcoin blockchain to operate, BounceBit has its own native token and chain. The project’s creators believe that this structure will allow them more flexibility and resilience, and they aim to offer users additional options, such as EVM compatibility and proof of stake (PoS), that wouldn’t be possible with traditional Layer 2 staking designs.

How Does BounceBit Work?

The underlying framework of BounceBit's BTC restaking infrastructure is built on a comprehensive PoS chain that uses a collection of nodes secured by community members. Validators temporarily lock their tokens, and each one agrees to surrender their collateral if they incorrectly finalize a transaction. 

Dual Token PoS Structure

BounceBit’s PoS consensus mechanism uses a dual token system. Staked tokens can be in the form of either the native BounceBit token (BB) or wrapped liquid staking tokens (BBTC), which exist as temporary tokens users receive in exchange for their BTC or other staked tokens. With this dual token system, BounceBit can ensure it’s providing liquidity for all its projects.

Epoch-Driven Validator Selection and Incentivization

Validators in the BounceBit BTC restaking infrastructure are selected based on a timeline divided into 24-hour segments called Epochs. At the end of each Epoch, validator rewards are distributed and new validators are selected based on the number of coins a validator holds. This validator selection method allows for substantial liquidity and excellent security.

EVM Compatibility and Developer Support

One of the perks of having its own standalone chain with its own token is that BounceBit is EVM compatible. This means its protocols and smart contracts are designed in a language and structure that the Ethereum virtual machine can process. Due to its EVM compatibility, BounceBit can guarantee seamless integration with a variety of other projects.

Features of BounceBit

BounceBit provides a lot more than just standard staking: it aims to support its users along every step of their investment journeys. When you participate in BounceBit's crypto community, you can enjoy all of these great features.

BounceClub

One of the key benefits of BounceClub is its community. The BounceClub universe is a web3 ecosystem whose users can choose from a built-in library of smart contracts and protocols to build their own projects. Each project is called a BounceClub, and can be downloaded and used by other members. These web3 projects make it easy for people to explore interests ranging from the derivatives market to crypto investments.

Shared Security Clients

Shared security clients are developers who use the security of BounceBit for their own projects. People can use its PoS consensus mechanism to secure their own sidechain or token. In this way, it provides a valuable service while offering more ways for stakers to earn rewards. 

BTC Bridge

The BTC Bridge lets users move their BTC on and off the BounceBit chain. Not only does this make providing liquidity easier, but it also offers extra consistency. All tokens are mapped, from BTC to BBTC, so people can make on-chain transactions that won't vary in value based on market fluctuations.

Oracle

BounceBit's oracle helps to move information on and off its chain. This is essential because it allows outside data to regulate BounceBit contracts. For example, the oracle can share the price of other coins and automate the system to make crypto investments when prices are favorable.

CeFi + DeFi Parallel Yield Generation

Staking rewards on BounceBit come from both CeFi and DeFi systems working together in parallel. A DeFi market maker allows for decentralized trading without order books, while CeFi regulations ensure user assets are held to the highest possible security standards.

Premium Yield Generation

This optional feature lets users invest their money to get additional returns from BounceBit's investing services. It uses a delta-neutral, low-risk trading strategy for CeFi markets to help people earn even more rewards.

BounceBit Road Map

In just a few months, BounceBit has designed its blockchain, released its app and built a community of crypto enthusiasts. The next step on its investment journey is to optimize its CeDeFi asset management system. This will involve a blend of traditional centralized finance and blockchain-based decentralized finance services. The BounceBit team hopes to spend the rest of the year improving its infrastructure further and collaborating with other companies to provide even more investment opportunities.

BB Tokenomics

BB is the native token of BounceBit. It's used to run the network's staking mechanism and pay gas fees on the network, and is also a governance token. The total supply of 2.1 billion BB coins will slowly be unlocked. Over the next six years, monthly airdrops and unlock events will release more tokens, which will be distributed as follows:

• Staking rewards: 35%

• Investors: 21%

• BounceClub and ecosystem reserves: 14%

• Team: 10%

• Binance Megadrop: 8%

• Advisors: 5%

• Testnet users and early community members: 4%

• Market making: 3%

BB Price Prediction

Since Bouncebit’s BB airdrop in mid-May 2024, the token's value has dropped quite a bit. Like many other new tokens, it's experienced numerous price fluctuations, briefly spiking to its ATH of $0.5508 before dropping to $0.31 and stabilizing in the $0.30–$0.35 range, where its price seems likely to remain for the next few months (as long as its trading volume remains stable).

CoinCodex predicts that BB’s price will reach a new ATH of $1.71 by 2025 and increase even further to $2.30 by 2029, and DigitalCoinPrice shares similarly positive sentiments, predicting BB will reach $0.94 by 2025 and $1.98 by 2029.

Where to Buy BB

Looking to trade BounceBit tokens? Bybit now offers both the BB/USDT Spot trading pair and BBUSDT Perpetual contracts. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the BB/USDT Spot trading page or BBUSDT Perpetual contracts trading page. 

To celebrate this listing, Bybit is also holding two exclusive events where you can earn a share of the 280,000 BB prize pool!

The first event, Token Splash, offers 30 BB each to the first 5,000 new users who complete the following two steps between May 13, 2024, 8AM UTC and May 27, 2024, 9AM UTC:

1. Sign up for a Bybit account and complete Identity Verification.

2. Accumulate a deposit volume of at least 200 BB, or deposit at least 100 USDT and use your Bybit account to trade 100 USDT worth of BB via your first trade with Bybit.

In addition, from May 13, 2024, 10AM UTC to May 27, 2024, 9AM UTC, simply trade at least 500 USDT worth of BB on Spot to grab a share of the 100,000 BB prize pool. Please note that your ranking will be determined by your trading volume. The more you trade, the larger your share of the prize pool. Rewards will be capped at 1,000 BB per user.

The second event, BB x Referral Boost, will be held from May 13, 2024, 8AM UTC through May 27, 2024, 9AM UTC. Invite your friends to sign up for a Bybit account with your referral code and complete both steps above for new users in the first event. Referrers of the first 5,000 qualified referees will receive 6 BB for each qualified referee. Rewards will be distributed on a first-come, first-served basis.

Is BB a Good Investment?

If you're looking for an up-and-coming crypto, BB may be a good way to go. It has quite a few early community members supporting the token, and is experiencing decent trading volume and growth at the moment. However, this crypto's long-term success is difficult to predict. Future airdrops may increase token supply, and demand may drop if BounceBit doesn't become the next big thing. 

Furthermore, the entire BounceBit ecosystem is still a fairly new project that hasn't proven its staking system will work. Therefore, investors need to be cautious about their BB crypto holdings. Make sure to do your research, account for market fluctuations and avoid overextending yourself financially. 

Closing Thoughts

BounceBit's liquid staking services use crypto trading and the derivatives market to help users earn staking rewards from their Bitcoin. The key benefits of this ecosystem include its robust crypto community, its support of web3 developers, and its broad range of both centralized and decentralized financial investments. By providing a unique blend of on-chain services, BounceBit already stands out from other Bitcoin restaking services.

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