Can Boundcebit become Ethena of BTC ecosystem?

introduce

BoundceBit is a restoring base layer in Bitcoin ecosystem.In terms of design, it has in -depth cooperation with Binance to architectural CEDEFI components with high returns. In addition, it will build Bouncebit Chain by itself, set up specific use scenarios for Restaking, and integrate an interesting system.BounceBit’s tokens BB will be launched on 5/13.According to the official information, TVL has exceeded $ 1BN in the current article.

In terms of investment institutions, in February this year, Bounterbit raised a seed wheel of $ 6M. This round was led by Blockchain Capital and Breyer Capital.In March and April, Okx Ventures and Binance Labs gave strategic investment respectively.

In terms of core concepts, the design of BoundceBit is very different from the current Bitcoin L2.It does not design a new asset type, and does not try to modify any part of the Bitcoin underlying agreement. On the contrary, it clearly knows that the core of the Bitcoin ecosystem is the BTC with a huge market value and the best decentralized attribute.What you do is just to use BTC itself.In this seemingly lazy way, after looking back after research and thinking, we faintly feel that it is a straightforward approach.

In the following, we will introduce its mechanism in detail and discuss some of its key designs.

Introduction

Refer to the above architecture diagram, you can see that BoundceBit is mainly composed of three parts:

Boundcebit Protocol: CEFI part;
BOUNCEBIT CHAIN: The part of staking and lsd;
Share Security Client: The part of RESTAKING.

Bouncebit protocol

The details of Bounterbit Protocol can refer to this picture: The user stores BTC into the Bouncebit Protocol, and will receive LIquid Custody token (LCT) as a deposit certificate in the form of 1: 1.For example, when you deposit BTC, you will receive BounceBTC (BBTC), and you will get back to the BoundceBit USD (BBUSD) in USDT.According to the official explanation, the assets currently acceptable are: BTC, WBTC, USDT on Ethereum, and BTCB and FDUSD on Binance Smart Chain.

Then Bouncebit Protocol will keep all the assets that the user deposits in to the custody account of a multi-party calculation (and MPC).Anzhong, entrusted to the asset management company to conduct operations such as Funding Rate Arbitrage to generate profits and return this profit to users.

Between Binance and the custody account, the OES method is used to ensure security through the OES method of OES (OES) to ensure security.

The specific fund custody service providers here are CEFFU and Mainnet Digital.CEFFU’s predecessor was Binance Custody. For a long time in the past, it was the only custodian partner in Binance (recently added several new Swiss banks to cryptocurrency).Mainnet Digital is a Singapore service provider starting from Mainnet Capital.

Bounter chain

BoundceBit Chain is a consensus mechanism that uses the delegated-Proof-OF-Service (DPOS), and EVM is compatible with independent Layer 1.

The core of POS is that many nodes (Nodes), through the act of pledged funds into the stakeholders of this blockchain.Through verification, the security of the overall blockchain also contributes to the corresponding rewards.(Borrowing Xu Mingen’s vivid lecture, this is a reward for digital labor.)

In the design of BoundceBit Chain, users can freely choose to make the BBTC or/and BB in their hands, and the delegation to the active verification group (AVS) to earn a specific verification node (AVS) to make moneyTaking rewards.

Verification nodes can freely set the market competition.In the current settings, AVS will have 50 verification nodes at the same time in each 24 -hour one -cycle EPOCH (25 pledge of BTC, and 25 pledge of BB). The number 50 is confirmed by the governance.As for which verification nodes are selected into AVS, it will be re -confirmed according to the performance.

The above set of pledge process will be executed through liquid Staking Module, and the corresponding STBBTC and STBB will be given to users as a pledge certificate (that is, LSD).

This LSD will have two uses:

Get the DAPP on the BOUNCEBIT Chain. The imagined scenes are: the collateral of the CDP stabilized coin protocol, the mortgage as the Lending protocol, the liquidity of the group above DEX (and earn LP rewards)
Let the security of Share Security CLIENTS (SSCS) rented the security of BoundceBit Chain, such as Bridge, Oracle, SideChain, etc., which is the part of RestAking.The logic here is consistent with Eigenlayer.However, there have been no cases of clients. It is estimated that early rewards will also be given in the form of points to give user airdrop expectations. As for whether it is the story of carrots and donkeys, it needs time to verify.

In summary, the relationship between the complete structure and the various structures is as follows:

Tokenomics

As the native currency of BoundceBit Chain, the total supply of BB is 2,100,000,000 pieces.

BB’s TGE time is expected to occur in May 2024.The circulation supply at the time of listing will be 409,500,000, accounting for 19.50%of the total token supply.

There are two points that attract our attention here:

Investors account for 20%, slightly higher than the 10%to 15%common in Web3.
Binance Megadrop accounts for 8%and will be released when TGE.

Combined 1) BounceBit is the first project of Binance Megadrop. 2) Bitcoin (BTCB) in supporting BNB format at the beginning. We can see that Bounterbit has a deeper connection with Binance.It can be imagined that this intensity is expected to attract a large number of users and TVLs from Binance in the initial period. However, whether a large number of airdrops can achieve continuous development depends on whether the BB has the corresponding revenue scenario to support competitiveness and competitiveness.APY.

Marketing strategy

In terms of marketing, BoundceBit has pushed the “Water Margin” on the testing network, attracting users to participate in the “Journey to the West” of BounceClub, and “Megadrop” with Binance recently.

The Water Margin is a TVL incentive activity similar to BLAST. It is also the Elements such as TVL earning points, inviting new users, rankings and other elements, but newly added games such as acceleration cards, points bonus cards, team activities, draws and other gameselement.
Journey to the West is to allow users to build their own club (Club), which is a tool that allows users to customize different DAPP connecting.
MEGADROP is a deep -binding activity with Binance. On the one hand, it is drainage for BoundceBit. On the other hand, it also gives BNB use scenarios and lock -locking motivations. For specific rules, you can refer to here. It is a relatively novel and intuitive gameplay.

In general, marketing, as an indispensable part of Web3 products, the Bounterbit team looks like a very playful XDD in this regard

Ecological progress

There are already some DEFI projects in the BOUNCEBIT ecology, including Bitswap (DEX), Multibit (BTC EVM two -way bridge), Bitstable (stablecoin), etc.

Taking Bitswap as an example, as the first DEX built based on BoundceBit, through cooperation with Multibit and DAII, it hopes to simplify cross-chain transactions and become a liquidity center for BRC-20 assets.Users can exchange any ERC20 token (ETH/USDT/, etc.) to DAII on BITSWAP, and DAII is paired with other bridges BRC20 assets.In addition, by integrating Multibit’s CCIP, users can seamlessly transfer BRC20 to Bitcoin.

ERC20 & lt;-& gt; daii & lt;-& gt; brided brc20 & lt;-& gt; brc20

https://twitter.com/bitswap_xyz/status/1750015734216864145

About some extension thinking of BoundceBit

After understanding the basic design of BounceBit, there are several more interesting points. Let’s start discussing:

CEDEFI mode has its application scenario

Even if the user enters a relatively decentralized environment like BounceBit Chain, as the name implies, because the main is the form of CEDEFI, it may still face the CEFI risk exposure that the BBTC or BB secretly contains.However, we should not treat the centralized exchange (CEX) or all centralized components as floods.For example, most DAPP now uses upgraded contracts, and the control is actually in the hands of the project party (this is exactly that the user owns the project of the project instead of Equity); or for example, many L2 at this stage at this stageIt is also a centralized sorter.But this does not affect people to use them.

The decentralization is spectrum, a centralized exchange, such as Binance, for Xiaobai users, many times it is a more secure and reasonable behavior that trades on the Defi Protocol than in the Defi Protocol.For large households, CEDEFI also provides them with a compromise option to increase their income through the premise of ensuring asset security.
Source and sustainability of benefits

The source of income and sustainability is the core of any web3 products.From the perspective of Boundcebit, it can be simply divided into three benefits:

a. Access to Binance’s asset management income on Bouncebit Protocol

Binance’s asset management income is currently seeing the Funding Rate ARB.Under the premise of correct execution, this strategy can almost achieve Delta Neutral, which is a low -risk and controllable trading strategy.

b. pledge reward on Bounter Chain

The pledge rewards on Bounter Chain comes from the trading fee on the chain and the BB token issued through the POS.

c. Ecological DEFI income

DEFI income depends on the degree of Defi in the Boundcebit ecology.

In addition, given that the Boucebit ecology is now in the early stages of development, the development of SSC’s subsequent pledge ecology is the key to observing Bonucebit’s stamina. It is speculated that the team will launch related activities or the development of encouraging applications such as hackers, so that SSC subsequent pledge rewards are in a oneAttractive level.
The value of BTC L1

During the recent period of the Bitcoin ecosystem, inspired by Mezo’s design ideas, we also used the framework of the first principle to evaluate any new project: what value does this chain / protocol bring to BTC L1?

If the essence of POS / DPOS is to use decentralized capital to protect the blockchain network, it can be divided into two levels: one is more capital, and the other is that capital is more decentralized.The second point is not easy to demonstrate, but in the first point, if the assets of POW can be included in His Majesty, the blockchain with POS as a consensus will have stronger guarantees.BoundceBit (only) at the asset level, creating a new design idea for BTCs to create new use scenarios is simple and frank in our opinion, which is in a clear comparison with many Bitcoin ecosystems.

At first we thought this method was lazy, neither considered how to do a good job of native EVM, but also considering how to use the architecture of native UTXO.But after research and thinking, we believe that this is a straightforward approach: it is clearly told users that this is a product with centralized ingredients, and only BTC is used as the asset as the BoundceBit chain.After all, the key is to use the BTC in a way to trust the BTC holder to increase its use scenario, and the specific means can be flexibly changed.

Conclusion

How to use BTCs is undoubtedly the focus of the BTC ecology. Different project parties hand over different answers in this proposition composition.The plan of BoundceBit is simple and direct, and it is closely creating value around BTC income. At the same time, the project is running for less than half a year, that is, it becomes the first phase of the MEGADROP project of Binance. Team resource operation and integration capabilities are evident.However, whether the SSC can get better in the long run is the key to measuring the real success of Bouncebit.