BounceBit's Maximal Capital Efficiency Strategy: A Comprehensive Guide

In an effort to enhance capital efficiency within the crypto space, BounceBit has introduced a comprehensive guide that aims to merge Centralized Finance (CeFi) and Decentralized Finance (DeFi) to maximize yield while ensuring security and sustainability. According to BounceBit, this innovative approach enables users to earn yield from multiple sources through a single product, creating a more sustainable and efficient model.

BBUSD in Premium Yield

BounceBit's CeDeFi infrastructure introduces BBUSD, a Liquid Custody Token (LCT) backed 1:1 by regulated custody. Users can subscribe to a USDT Premium Yield strategy using BBUSD, allowing them to earn USDT yield from Funding Rate Arbitrage while simultaneously earning node staking rewards. Subscription to Premium Yield is mandatory for eligibility to earn BB rewards.

stBBTC in Premium Yield

For BTC holders, BounceBit offers stBBTC, another LCT. By subscribing to a BTC Premium Yield strategy with stBBTC, users can earn BTC yield from Funding Rate Arbitrage along with node staking rewards. Unlike BBUSD, users do not need to subscribe to Premium Yield to receive BB rewards from node staking. However, to maximize yield, BBTC must first be staked to a node via Portal or BBScan to obtain stBBTC.

Getting Started with BounceBit

BounceBit provides a step-by-step guide to help users get started:

I. Obtain BBUSD or BBTC

1. Visit BounceBit Portal and connect your wallet.
2. Select the network corresponding to the currency you wish to deposit.
3. Enter the deposit amount and approve the transaction in your wallet.
4. Once approved, you will receive BBUSD or BBTC in your wallet.

II. Bridging to BounceBit Chain

To participate in node staking rewards, users must bridge their LCTs to the BounceBit Chain:

1. Switch to the ‘Bridge’ tab in the BounceBit Portal.
2. Select the asset and chain from which you are bridging, enter the amount, and confirm the transaction.
3. Approve the spending cap and bridging transaction in your wallet.

After bridging, users can view their balance on the BounceBit Mainnet and check transactions on bbscan.io.

III. Use LSD to Get stBBTC (For BBTC Only)

1. Navigate to the “Stake” tab on the BounceBit Portal.
2. Switch to the BBTC tab, enter the amount to be staked, and confirm the transaction in your wallet.
3. Once the transaction is complete, users will receive stBBTC as a voucher.

IV. Subscribing to Premium Yield

1. Ensure you have an LCT (BBUSD, BBTC, or stBBTC) ready on BB Chain, BSC, or Ethereum.
2. Navigate to BounceBit Premium Portal and select a strategy.
3. Enter the amount to stake, confirm the transaction in your wallet, and wait for approval.

Upon successful subscription, users can view their Premium Staking data on the BounceBit platform.

BounceBit's approach of combining CeFi and DeFi aims to offer a robust and efficient yield generation model, providing users with multiple avenues to maximize their returns while ensuring the security and sustainability of their assets.

Image source: Shutterstock

• cefi
• defi
• yield farming