Binance Research: Research Report on Bitcoin Re-staking Public Chain BounceBit

• BounceBit has built a BTC restaking infrastructure that provides a foundational layer for various restaking products. Through a CeFi + DeFi framework, BounceBit enables BTC holders to earn yields from multiple sources.

• The BB token has various uses on the BounceBit platform:

• Staking: Stake BB to participate in the dual-token staking mechanism of Bounce Bit PoS.

• Protocol Incentives: Tokens are paid as staking rewards to validators who ensure network security.

• Gas Fees: BB is used to pay for the Gas fees required for transactions and executing smart contracts.

• Governance: Use BB to participate in on-chain governance, such as voting on protocol upgrades.

• Currency: BB can be used as a currency on the BounceBit platform. It can be utilized in various applications and infrastructures as a medium of exchange or a store of value.

• BounceBit's Layer 1 consists of the following components:

• Dual-Token PoS: A hybrid consensus mechanism where each validator can accept both BBTC and BB tokens simultaneously;

• Native LSD Module: This module allows staking to be delegated to validators and receive LST certificates in return.

• The foundational CeFi layer of BounceBit consists of the following components:

• Compliance Custody: All user funds are stored in a secure custody solution via MPC wallets.

• Over-the-Counter Settlement: OES can securely leverage CEX liquidity while trades are settled off-chain.

• The project has raised $7.98 million from previous funding rounds.

• The total supply of BB is 2,100,000,000 tokens, with a circulating supply post-listing of 409,500,000 tokens (19.50% of total supply).

Key Metrics

|------------------|---------------------------| | Token Name | BB | | Token Type | BounceBit native token | | Initial Token Circulation | 409,500,000 (19.50% of total supply) | | Total Supply and Max Supply | 2,100,000,000 | | Binance Megadrop Allocation | 168,000,000 (8.00% of total supply) | | Binance Megadrop Start Date | TBD |

Token Distribution

|------------------|--------------| | Token Name | BB | | Binance Megadrop | 8.00% of total supply | | Liquidity Providers | 3.00% of total supply | | Testnet Incentives | 4.00% of total supply | | Advisors | 5.00% of total supply | | Team | 10.00% of total supply | | BounceClub and Ecosystem Reserve | 14.00% of total supply | | Investors | 21.00% of total supply | | Staking Rewards | 35.00% of total supply |

1. What is BounceBit?

• BounceBit empowers Bitcoin assets by actively participating in network validation and various revenue-generating activities (including CeFi, DeFi, and restaking), transforming Bitcoin from a passive asset into a positive force within the crypto ecosystem.

1.1 Project Mission

• The mission of the project is to enable more people to access high-yield opportunities in Bitcoin assets that are typically only available to quantitative and top-tier asset management firms. BounceBit aims to bring the combined advantages of transparent CeFi and DeFi to the masses.

1.2 Value Proposition

• BounceBit is based on the idea that the development of Bitcoin should primarily involve the use of assets without altering the Bitcoin blockchain. By leveraging funding rate arbitrage and creating on-chain certificates for restaking and mining, it effectively combines the advantages of centralized finance (CeFi) and decentralized finance (DeFi). This integration brings opportunities to Bitcoin, allowing it to generate better yields and achieve broader applications.

1.3 Project Highlights

• BTC Restaking: The BTC Restaking infrastructure built by BounceBit ensures fund security through regulated custody services from Ceffu, Mainnet Digital, and Fireblocks. When assets generate interest through arbitrage strategies managed by experienced asset management entities, users receive a BTC-pegged version called bounceBTC (BBTC), which can be delegated to node operators who return staking certificates (stBTC) to the stakers. This liquid staking derivative can then be restaked to other Shared Security Clients (SSC) such as sidechains, bridges, and oracles.

• Dual-Token PoS: Dual-Token PoS is a hybrid consensus mechanism where each validator can accept both BBTC and BB tokens simultaneously. This system expands the stakeholder base and weaves an additional layer of resilience and security into the network consensus structure.

• BounceClub: BounceClub serves as an on-chain space where users can create DeFi experiences using completed mini-programs without coding, easily integrated from the App Store.

• Liquid Custody: BounceBit introduces the concept of "Liquid Custody," allowing staked assets to remain liquid and providing more opportunities for yield generation. When users deposit assets into BounceBit, they receive a Liquid Custody Token (LCT) that represents their assets being custodially managed on a 1:1 basis. These tokens can be bridged to BounceBit and used further.

1.4 Existing Products

Solution Design

Liquid Staking Derivative Module

This infographic introduces BounceBit's native Liquid Staking Derivative (LSD) module. Token holders can delegate their BBTC and BB to validators and receive LST (stBBTC, stBB) as proof. Nodes are selected as active validators based on voting weight; otherwise, they are candidate validators. The maximum number of validators is determined by governance.

Liquid Custody

This infographic illustrates the concept of liquid custody. After users deposit assets, BounceBit issues them a liquid custody token. Funds are stored in custody solutions that meet industry standards. Users can choose to participate in delta-neutral funding rate arbitrage strategies through off-chain settlement solutions (Ceffu's MirrorX).

2. Token Economic Model

2.1 Token Allocation

2.2 Token Issuance Timeline
Note: BB tokens will continue to unlock after March 2023.

3. Roadmap

Key Milestones

|----------|------------------------------------------------------------------------------------------| | Date | Milestone Event | | 2024: Q1 | Launch "Water Margin" points activity and Premium Yield products | | 2024: Q1 | TVL reaches 100 million within a week | | 2024: Q1 | TVL reaches 300 million within two weeks | | 2024: Q1 | TVL reaches 500 million within a month | | 2024: Q1 | Testnet launch on March 8 | | 2024: Q2 | Reach 100,000 early users within two months |

Future Roadmap

• Q2 2024:

  Premium Yield products continue

  Launch of BounceBit mainnet

  Ecosystem building

  BounceClub distribution

• Q3 2024:

  More CeDeFi products

  Options and structured products

  Lending

• Q4 2024:

  BounceBit restaking platform

• Q1 2025:

  Shared Security Client (SSC) ecosystem development

Business and Development Plans

• ++Ceffu++: Centralized custody & OES solutions

• ++Mainnet Digital++: Compliant institutional crypto asset custody

• ++Antalpha++: Bitmain asset management operation platform

4. Community

• Twitter

• Medium

• Telegram

• Discord

Appendix

• Blockchain Explorer - BBScan