- The concept of liquid restaking has gained significant popularity in recent quarters, offering users the exciting possibility to extract additional value from their staked tokens.
- However, this has been predominantly applied throughout a variety of Ethereum-based applications.
- BounceBit is delivering a BTC restaking infrastructure designed to provide a foundational layer for various restaking products.
Explore the world of liquid restaking with BounceBit, a platform that offers a BTC restaking infrastructure. Learn about its unique features, tokenomics, and how it aims to provide additional value to users.
Understanding Liquid Restaking and BounceBit
Liquid restaking is a process aimed at increasing the economic security of external systems. Users can stake their ETH into protocols like Lido and receive a synthetic representation of this ETH, which can be restaked, receiving another token called a liquid restaking token. BounceBit, on the other hand, is building a BTC restaking infrastructure that’s designed to provide a layer for restaking products on the Bitcoin network.
BounceBit’s Unique Approach
BounceBit differentiates itself as a Proof of Stake layer one ecosystem where validators are required to stake BTC and the native BounceBit token. This establishes a dual-token security system that’s aimed at strengthening the network itself but also at improving the intrinsic value of Bitcoin by providing its holders with an active role in validating the BounceBit network.
What Problems Does BounceBit Solve?
BounceBit aims to tackle several issues in the crypto space, including lack of transparency, underutilized BTC assets, and the absence of a smart contract platform within Bitcoin’s ecosystem. It also seeks to improve Bitcoin’s utility by enabling additional use cases and unifying BTC across chains.
Exploring BounceBit’s Infrastructure
BounceBit is building a network that leverages the well-known Proof-of-Stake (PoS) consensus algorithm to rethink conventional staking models that focus on a single token. They call this approach Dual-Token Proof of Stake (PoS). The protocol’s architecture incorporates a number of node operators who can be selected as validators. These validators are required to stake BB (the native token of BounceBit) and/or BBTC (staked BTC on the BounceBit chain).
The Liquid Staking Tokens
BounceBit has a native liquid staking smart contract. If users opt-in to stake their BB or BTC, they will receive an LST (liquid staking token). These are stBB – derived from staking BB, and stBBTC – derived from staking BBTC (BTC staked on BounceBit).
BounceBit Economy and BB Tokenomics
BB is the native token that powers the BounceBit platform. The total supply is capped at 2.1 billion. BB tokens can be used in multiple ways, including taking part in the on-chain governance process, participating in the PoS Dual-token mechanism, and as a reward for validators who secure the network.
Conclusion
BounceBit offers a unique approach to liquid restaking, focusing on BTC rather than ETH. By providing a dual-token security system and tackling common issues in the crypto space, BounceBit aims to provide additional value to users and strengthen the overall crypto ecosystem.
