BounceBit BB: Dual-Staking Chain & CeDeFi on Bitcoin

Bitcoin has always been king in terms of value, but its utility in DeFi has been limited—until now. BounceBit (BB) introduces a Bitcoin restaking infrastructure, blending CeFi and DeFi into a new paradigm called CeDeFi. With its dual-token staking model (staking both BTC and BB), a native PoS EVM-compatible chain, and liquidity custody tokens (LCTs), BounceBit empowers users to tap into institutional yields, cross-chain liquidity, and transparent on-chain access.

Whether you’re an investor interested in staking rewards, a developer eyeing building on an EVM chain, or a trader wanting lower slippage and fast settlement, BounceBit offers a novel path. This guide will dig into how BB works, its role in governance, bridging, and tokenomics, plus real use cases and important risks to watch. Let’s dive in.

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What Is BounceBit (BB) and What Makes It Unique

BounceBit is a Layer-1 Proof-of-Stake (PoS) blockchain that introduces a novel way to integrate Bitcoin into modern blockchain infrastructure. Unlike traditional chains that rely only on wrapped BTC or sidechains, BounceBit enables “BTC restaking”—letting BTC holders actively secure the network alongside the native token BB. This dual-token model aims to combine Bitcoin’s strength and liquidity with the flexibility and programmability of a smart contract blockchain. The result is a hybrid infrastructure that offers both security and yield opportunities for Bitcoin holders in a more decentralized and feature-rich environment.

Dual-Token Security: BTC + BB

One of the key innovations of BounceBit is its dual-token PoS consensus mechanism. Validators can stake Bitcoin (BBTC, bridged from chains like Ethereum and BNB via supported custodial/bridge infrastructure) and/or the native BB token to secure network consensus and participate in block validation.

This design offers several advantages:

• It anchors the chain’s security to Bitcoin’s liquidity and relative stability, which helps reduce risks associated with new chain tokens.
• Validators earn fees and rewards in BB by participating in consensus, providing alignment across stakeholders.
• The dual-token model mitigates risks such as volatility or down spirals in BB by leveraging the economic weight of staked Bitcoin.

Because BTC holders can restake, they contribute to the chain’s security without losing exposure to BTC—this helps bootstrap security and decentralization from day one.

CeDeFi: Merging Centralized Yield with DeFi Transparency

BounceBit introduces a CeDeFi (Centralized + Decentralized Finance) framework, which aims to deliver the yield potential of centralized finance while maintaining the transparency and programmability of decentralized ecosystems.

Here’s how BounceBit blends these domains:

• Through partnerships (e.g., with regulated custodians like CEFFU) and secure bridges, users deposit BTC and stablecoins, earning off-chain yield (e.g., from arbitrage or institutional strategies) while also interacting with on-chain DeFi protocols.
• The platform issues Liquid Custody Tokens (LCTs), which represent these assets in DeFi contexts, enabling yield farming, staking, or restaking while the original assets benefit from CeFi strategies.
• Users can access structured products, fixed yield options, and on-chain broker tools that settle rapidly, with low slippage, leveraging the CeDeFi architecture.

This hybrid model is designed to lower barriers to institutional yield for regular users, making higher returns more accessible in a controlled, transparent environment.

Infrastructure Highlights: EVM, LCTs, and On-Chain Broker Tools

BounceBit is built to be both powerful and developer-friendly. Key infrastructure features include:

• EVM compatibility: Developers familiar with Ethereum can build, deploy, and migrate smart contracts and DApps onto BounceBit with minimal friction.
• Liquid Custody Tokens (LCTs): These tokens represent custodied BTC or stablecoins on the platform. Users who lock assets receive LCTs, which remain tradable and usable in DeFi protocols even while underlying assets are staked or yielding in CeFi.
• On-chain broker and trading features: BounceBit integrates fast settlement, tighter spreads, lower fees, and zero or low slippage trading using LCTs and the chain’s native DeFi suite.

These features create a full-stack infrastructure that supports BTC restaking, DeFi activity, and institutional-grade finance – all within a single ecosystem.

BounceBit isn’t just another smart contract chain—it aims to reimagine how Bitcoin can participate in DeFi. By combining restaking, dual token security, and hybrid CeDeFi mechanisms, the platform seeks to democratize yield previously reserved for institutions. Users get to hold real BTC, stake it, and earn rewards, all while engaging with smart contracts and decentralized applications. With its EVM compatibility, liquid tokens, and integrated brokerage tools, BounceBit offers a unique bridge between the traditional and decentralized financial worlds.

BB Token Uses, Staking, & Governance

The BB token is the native asset of the BounceBit ecosystem, serving as the backbone of its dual-token Proof-of-Stake (PoS) model and enabling a wide range of utilities within the chain. Beyond being a staking asset, BB functions as a gas, governance, and composability currency, making it an essential component for both users and developers on BounceBit. With a carefully designed supply schedule and governance structure, BB aims to align long-term incentives between validators, delegators, and the broader community.

Token Utility: Staking, Gas, and Governance

At the heart of BounceBit’s infrastructure, BB powers several critical functions:

• Staking & Network Security: Validators and delegators can stake BB alongside restaked BTC to secure the network. Validators run nodes, while delegators can assign their BB to trusted validators, both earning rewards in return. The dual-token mechanism enhances chain security by combining Bitcoin’s liquidity with BB’s native participation incentives.
• Gas Fees: Like ETH on Ethereum, BB is used to pay transaction and execution fees across the BounceBit network. This ensures smooth smart contract deployments, token transfers, and interaction with decentralized applications (dApps).
• Governance: BB grants token holders the right to propose and vote on protocol upgrades, parameter adjustments, and ecosystem initiatives. Governance is community-driven, encouraging decentralized decision-making.
• Composability: BB integrates seamlessly with BounceBit’s CeDeFi framework and Liquid Custody Tokens (LCTs), ensuring it plays a role not only in securing the chain but also in bridging between custodial yield and on-chain DeFi activity.

This multi-layered utility makes BB indispensable for participating fully in the BounceBit ecosystem.

Token Supply, Allocation, and Vesting

BounceBit’s BB tokenomics are designed with both sustainability and decentralization in mind. The total supply of 2.1 billion BB is distributed across different stakeholders with defined vesting schedules to prevent market shocks and encourage long-term alignment.

Key aspects of BB’s token distribution include:

• Community & Ecosystem Incentives: A significant portion of tokens is reserved for liquidity mining, staking rewards, and ecosystem development to encourage user adoption.
• Core Contributors & Team: Allocated to builders and contributors with multi-year vesting schedules, ensuring that the team’s incentives align with the project’s growth trajectory.
• Investors & Strategic Partners: Early supporters and institutional backers receive allocations under structured vesting to support network development without creating immediate sell pressure.
• Foundation & Treasury: A share is held by the protocol foundation to fund governance, grants, and long-term ecosystem sustainability.

By combining emission rules with gradual unlocks, BounceBit balances rewarding early adopters with ensuring ongoing decentralization and stability.

Governance: Community-Led Protocol Direction

BB holders are central to BounceBit’s governance framework. With on-chain governance, token holders can influence how the protocol evolves by:

• Proposing Protocol Changes: Suggestions for upgrades, integrations, or parameter changes can be introduced by the community.
• Voting Power: Voting weight is tied to the amount of BB staked or delegated, ensuring that active participants in the ecosystem guide its development.
• Treasury Decisions: Governance also manages the use of treasury funds, such as grants for developers or partnerships for ecosystem growth.
• Dual Participation: Since BounceBit also incorporates BTC restaking, governance ensures alignment between BB holders and BTC restakers, creating a balanced decision-making environment.

Through governance, BB transforms from a utility token into a community-driven coordination tool for shaping the future of BounceBit.

The BB token is more than just a digital asset—it is the engine of BounceBit’s security, governance, and utility. With staking for both validators and delegators, gas fee usage, and active governance rights, BB is designed to incentivize long-term commitment from users while enabling scalable and transparent growth. Coupled with its structured supply and vesting schedule, BB positions itself as a foundational piece of BounceBit’s vision to merge Bitcoin’s liquidity with next-generation decentralized finance.

Dual-Token PoS & Bitcoin Restaking Mechanics

The security and sustainability of BounceBit revolve around its dual-token Proof-of-Stake model, which uniquely integrates Bitcoin into a staking system alongside its native BB token. By combining Bitcoin’s unmatched liquidity with the governance and utility features of BB, BounceBit introduces a new restaking framework that bridges traditional PoS with hybrid CeDeFi yield opportunities. This design not only strengthens the chain but also creates new ways for participants to earn yield while contributing to decentralized security.

How the Dual Staking Model Works

BounceBit’s consensus relies on staking both BTC (or wrapped BTC) and BB. This requirement creates a dual layer of protection while aligning incentives across different types of participants. Bitcoin brings credibility and capital strength, while BB ensures active engagement in governance, fee payments, and ecosystem growth.

The model is simple but powerful:

• Validators must stake both BTC and BB to run nodes and secure the chain.
• Delegators can contribute their assets to validators without running infrastructure.
• Rewards are distributed to both validators and delegators in proportion to their stake and performance.

By intertwining BTC and BB, the system raises the cost of malicious activity while making honest participation more rewarding.

Restaking BTC & Yield Generation

Restaking BTC is a cornerstone of BounceBit’s approach. Instead of letting Bitcoin sit idle, BounceBit makes it productive by connecting it to both on-chain and off-chain yield mechanisms. On-chain, BTC is involved in validator rewards and liquidity pools. Off-chain, custodians mirror restaked BTC in CeFi strategies that can generate additional returns.

This dual-yield approach benefits users by offering:

• On-chain transparency through verifiable smart contracts
• CeFi stability with access to institutional-grade yield products
• Balanced exposure that combines decentralized security with centralized efficiency

The outcome is a CeDeFi framework that transforms BTC into a yield-bearing, multi-use asset while still contributing to BounceBit’s core security.

Role of Validators, Derivatives & Shared Security

Validators are responsible for transaction validation, uptime, and maintaining the chain’s integrity. Their dual-stake requirement ensures they are heavily invested in the system’s long-term success. Delegators extend this model by supporting validators with additional BTC and BB, sharing in the rewards without needing to manage technical infrastructure.

To improve capital efficiency, BounceBit introduces liquid staking derivatives (LSDs), which allow stakers to keep their rewards while unlocking liquidity for use in trading, lending, or other DeFi activities. These derivatives reduce the trade-off between network security and asset mobility.

Shared security in BounceBit is more robust than single-token chains because it intertwines two value systems. Bitcoin’s global liquidity and BB’s governance utility together create a network that is resistant to attacks, scalable, and better aligned with both institutional and community stakeholders.

CeDeFi Products & Use Cases on BounceBit

BounceBit’s innovative CeDeFi (Centralized + Decentralized Finance) framework bridges the yield potential of centralized finance with the transparency and programmability of decentralized networks. By integrating Bitcoin restaking, native BB tokens, and hybrid yield strategies, BounceBit opens new opportunities for users to earn, trade, and participate in governance while maintaining security and liquidity. Its ecosystem combines staking, DeFi, and CeFi products into a cohesive architecture that supports both retail and institutional participants.

Yield Products on BounceBit

BounceBit offers multiple yield-generating products designed to cater to different risk appetites and participation levels.

• On-chain fixed yields: Users can stake BB or restaked BTC in validator pools or liquidity contracts, earning predictable rewards while contributing to network security. Smart contracts ensure transparency, with real-time monitoring of reward accumulation and payout schedules.
• Real-world asset exposure: Certain CeDeFi strategies mirror institutional-grade yields from off-chain markets, such as lending, arbitrage, or treasury management. By tokenizing these returns on-chain, BounceBit provides a way for users to earn a consistent yield while retaining control over their assets.
• Custody strategies: Trusted custodians and liquidity providers manage assets off-chain to generate additional income. The results are then reflected in on-chain rewards, allowing users to benefit from professional management without sacrificing transparency or decentralization.

This hybrid approach ensures that users can access sophisticated financial products without the complexity and risk typically associated with institutional markets.

Liquidity Custody Tokens (LCTs)

A cornerstone of BounceBit’s CeDeFi architecture is the Liquidity Custody Token (LCT). LCTs are issued to users when they stake BTC or other assets in the platform, effectively representing a liquid claim on staked assets.

Key features and benefits of LCTs include:

• On-chain usability: LCTs can be used in decentralized applications for trading, lending, or yield farming, unlocking liquidity that would otherwise remain locked in staking.
• Restaking & farming opportunities: Users can deploy LCTs across various pools or strategies, multiplying yield potential while keeping their original stake productive.
• Integration with CeDeFi products: LCTs act as a bridge between on-chain DeFi protocols and off-chain CeFi yields, allowing participants to benefit from hybrid strategies seamlessly.

By converting locked assets into tradable tokens, LCTs enhance capital efficiency and enable innovative use cases for BTC and BB holders.

Bridging & Cross-Chain Flows

BounceBit also facilitates cross-chain interoperability, allowing assets to move seamlessly between networks. The Portal Bridge is central to this functionality, supporting BTC, USDT, and other tokens across Ethereum, Binance Smart Chain, and BounceBit itself.

Through Portal Bridge:

• Users can transfer BTC and stablecoins into BounceBit for staking, restaking, or liquidity provision.
• Assets retain traceability and security while participating in yield strategies or governance.
• Liquidity flows efficiently between chains, enabling arbitrage, cross-chain farming, and multi-chain DeFi applications.

This cross-chain functionality ensures that BounceBit can integrate with existing DeFi ecosystems, bringing more participants and liquidity into the platform.

BounceBit’s CeDeFi products and use cases demonstrate how hybrid finance can empower users to generate yield, maintain liquidity, and engage in governance simultaneously. Through on-chain staking, off-chain custody strategies, liquid staking derivatives (LCTs), and cross-chain bridges like Portal Bridge, participants can access sophisticated financial instruments while keeping their assets productive and secure. The platform’s architecture exemplifies the future of blockchain finance, merging centralized and decentralized opportunities into a unified, user-friendly ecosystem.

BounceBit and its native BB token represent a bold attempt to bring Bitcoin into the restaking era — merging CeFi security, DeFi transparency, and institutional yield through a dual-token PoS chain. With its EVM compatibility, liquid custody tokens, and governance features, it offers multiple entry points for stakers, developers, and yield-seeking users.

But every innovation brings trade-offs: bridging risks, reliance on wrapped assets, and the need for cautious, informed participation. If you’re curious about earning BTC yield, building on a Bitcoin-secured chain, or governance in a dual-token ecosystem, explore the docs, try mainnet staking, join community discussions, and connect your wallet.