Proposal for Deployment of Venus Protocols on BounceBit Chain to Support BBTC and BBUSD
Introduction
BounceBit is excited to propose the integration of Venus’s lending and borrowing services into the BounceBit chain. This collaboration aims to enhance the functionality and reach of both platforms by supporting BounceBit’s native assets, BBTC and BBUSD, which are Liquidity-Secured Derivatives (LSD) from Ceffu. The integration will enable effective funding rate arbitrage and yield generation for these assets, aligning with the strategic goals of both entities to foster innovation and growth in the DeFi ecosystem.
Background
BounceBit’s unique CeDeFi infrastructure blends centralized finance (CeFi) and decentralized finance (DeFi) to provide parallel yield generation. Users can earn original CeFi yield while utilizing LSD for BTC staking and on-chain farming, known as restaking in Bitcoin. This ecosystem offers three types of yield for Bitcoin holders: original CeFi yield, node operation rewards from staking BTC on the BounceBit chain, and opportunity yield from participating in on-chain applications and the Bounce Launchpad.
BBTC and BBUSD have been developed as part of a strategic initiative to leverage the stability and security of LSD mechanisms provided by Ceffu. The primary goal is to facilitate seamless and profitable interactions in arbitrage and lending/borrowing scenarios on the BounceBit chain.
Value to the Community
Integrating Venus’s lending and borrowing services with BounceBit will bring significant value to the community through several use cases:
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Enhanced Utility and Liquidity: BBTC and BBUSD holders can leverage their assets for yield farming, staking, and arbitrage within a secure and efficient framework.
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Premium Yield Generation: Users can participate in premium yield generation strategies such as funding rate arbitrage through Ceffu’s MirrorX solution, enabling access to deep liquidity on multiple asset markets with reduced counterparty risk.
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Comprehensive Asset Management: Users gain access to diversified asset management services, allowing them to choose strategies that best fit their risk tolerance and investment goals.
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Security and Compliance: The integration will adhere to high standards of security and regulatory compliance, ensuring user trust and system integrity.
Additional Information
- ● Stablecoin Support: BBUSD is backed 1:1 by USDT and FDUSD in Ceffu, enhancing its stability and reliability. Stablecoins from various EVM-compatible Chains, such as FDUSD on Binance Smart Chain (BEP20) and USDT on Ethereum, can be bridged into the BounceBit ecosystem. Once transferred, these tokens are uniformly mapped and represented as BBUSD within BounceBit.
- ● KYC Requirements: KYC is only required for very large customers to participate in CeDeFi activities, maintaining ease of access while ensuring compliance.
Proposal
We propose that Venus deploy its lending and borrowing protocols on the BounceBit chain to support BBTC and BBUSD. This deployment will allow BounceBit users to leverage their assets for additional financial operations, such as yield farming and arbitrage, within the safe and efficient framework provided by Venus.
Technical Considerations
- ● Asset Compatibility: BounceBit will ensure that BBTC and BBUSD are fully compatible with Venus protocols by aligning with the technical requirements of Venus. This includes adapting the asset management to integrate smoothly with Venus’s operations on both testnet and mainnet.
- ● Security and Compliance: User contributions to Total Value Locked (TVL) are securely managed by Mainnet Digital’s regulated custodial services, assuring both compliance and safety. These assets are then mirrored via Ceffu’s MirrorX service, a key integration by BounceBit that maintains on-chain visibility and transparency of these assets. All integrations will adhere to the highest standards of security and regulatory compliance, with regular audits and reviews to maintain system integrity and user trust.
Implementation Phases
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Initial Testing on Testnet: Deploy Venus protocols on the BounceBit testnet for initial integration testing and to gather user feedback.
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Deployment on Mainnet: Following successful testnet trials and necessary adjustments, deploy the protocols on the BounceBit mainnet.
Expected Outcomes
- ● Enhanced utility and liquidity for BBTC and BBUSD on the BounceBit platform.
- ● Expanded opportunities for users to engage in lending, borrowing, and arbitrage.
- ● Strengthened collaboration between BounceBit and Venus, setting a precedent for futurecooperative efforts within the DeFi ecosystem.
Conclusion
BounceBit’s infrastructure is meticulously architected to elevate Bitcoin’s status from a passive asset to an active, yield-generating instrument. By offering an integrated platform where Bitcoin holders can capitalize on the strengths of both CeFi and DeFi, BounceBit is pioneering a new chapter in asset optimization and financial innovation within the blockchain space.We believe this proposal aligns with the strategic goals of both Venus and BounceBit, offering substantial benefits to our users and the broader DeFi community. We look forward to your feedback and hope for a positive response to proceed with this exciting initiative.
About BounceBit
BounceBit is a pioneering platform in the blockchain space, integrating CeFi and DeFi to offer users a seamless and secure experience. Our CeDeFi infrastructure, supported by regulated custodial services like Mainnet Digital and Ceffu, ensures the highest standards of security and compliance. BounceBit aims to enhance the Total Value Locked (TVL) within its ecosystem through innovative yield generation strategies and asset management services. By bridging BTC and other assets into the BounceBit ecosystem, we enable users to maximize their returns through diversified investment opportunities and active participation in the on-chain economy.
