regulatedcustody

Architectural Design - The CeDeFi Hybrid Model
Bridging the Divide: Why BounceBit's CeDeFi Architecture is the Future of Finance 🌉

BounceBit operates on a novel CeDeFi (Centralized-Decentralized Finance) Hybrid Model, combining institutional-grade security with the transparency and flexibility of decentralized applications. This architecture is designed to onboard institutional capital and provide retail users with unique yield opportunities.

Centralized Layer (CeFi): User-deposited assets are held by regulated, institutional custodians (like Mainnet Digital and Ceffu). This ensures asset security, compliance, and enables the execution of low-risk, institutional strategies like funding rate arbitrage to generate a secure base yield.

Decentralized Layer (DeFi): The corresponding Liquid Custody Tokens (LCTs) are used on the BounceBit Chain, a fully EVM-compatible Layer 1. This allows users to restake their assets, participate in DeFi protocols, and interact with the BounceClub ecosystem, creating a stackable yield on top of the CeFi base. This blend offers the best of both worlds: institutional security coupled with DeFi's capital efficiency.

#CeDeFi #InstitutionalAdoption #RegulatedCustody #YieldStacking #BounceBitPrime $BB @BounceBit