BounceBit, a Bitcoin staking startup supported by Binance, has unveiled its latest upgrade—CeDeFi, an acronym for Centralized-Decentralized Finance. The platform’s intent is to merge the benefits of both centralized and decentralized finance to augment operational efficiency and bolster security measures.
The upgrade, launched on November 12, was quickly followed by a doubling in BounceBit’s inflow. The startup received an influx of $20 million, consisting of Bitcoin (BTC), Tether (USDT), Ether (ETH), Binance Coin (BNB) and Solana (SOL) trades across the newly introduced CeDeFi V2 multi-chain platform.
One of the standout features of the upgrade is its multi-chain support for ETH, BNB, SOL, and BTC. Importantly, this support is offered without requiring users to bridge funds through BounceBit’s chain.
The CeDeFi V2 upgrade also enhances user flexibility, introducing new Auto, Fixed, and Manual yield strategy options. Additionally, it promises boosted APY rewards, with over $10 million bridged within the first hour.
BounceBit’s Founder and CEO, Jack Lu, noted the rising need to “bridge the gap between CeFi and DeFi” in a press release. He stated, “Our CeDeFi V2 platform is designed to leverage the liquidity of centralized exchanges while incorporating the transparency of decentralized systems.”
The upgrade delivers two key features: asset management and liquidity management. Asset management provides users with the ability to access yields across various chains and cryptocurrencies via centralized market structures. Simultaneously, BounceBit leverages centralized exchange liquidity to expedite execution and enhance capital efficiency, offering an advantage in speed compared to other decentralized exchanges.
Security concerns often serve as significant barriers for potential investors entering the crypto sphere. To mitigate these concerns, BounceBit’s upgrade streamlines the on-chain process of bridging cryptocurrencies, thereby reducing the potential risks associated with switching chains. Lu noted the increasing demand for secure platforms, stating, “CeDeFi V2 is positioned to meet this demand.”
In May 2020, BounceBit had declared its intention to blend the structure and liquidity of centralized exchanges such as Coinbase with a decentralized infrastructure for Bitcoin. This intention formed the groundwork for the recent CeDeFi V2 upgrade.
BounceBit was initially launched as a Bitcoin restaking startup in 2023. With support from prominent industry players such as Binance, Blockchain Capital, and Breyer Capital, the platform aims to enhance asset and liquidity management for institutional investors and large-scale traders.
