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BounceBit’s latest upgrade combines centralized and decentralized finance to form CeDeFi V2, a protocol that grants users multichain support without having to go through BounceBit’s chain.
Binance-backed Bitcoin staking startup BounceBit has launched its latest upgrade dubbed CeDeFi, which stands for Centralized-Decentralized Finance. The platform aims to combine both sides to enhance its operational efficiency and strengthen security measures.
Shortly after its upgrade launch on Nov. 12, BounceBit saw a 2X increase on its inflow, amounting to $20 million consisting of Bitcoin (BTC), Tether (USDT), (ETH), Binance Coin (BNB) and Solana (SOL) trades across the CeDeFi V2 multi-chain platform.
The upgrade introduces multi-chain support for ETH, BNB, SOL, and BTC without users having to bridge funds through BounceBit’s chain.
Other key features included in the upgrade encompass user flexibility, new Auto, Fixed, and Manual yield strategy options, as well as boosted APY rewards, with over $10 million bridged in the first hour.
⚪️🟡A New Chapter in #CeDeFi Unfolds.
V2 Has Arrived.Choose Auto, Fixed or Manual to earn real yield on ETH, BNB, SOL, BTC and more.
Supercharged $BB yield rewards available now! Plus USDT deposits are weighed 2Xhttps://t.co/0Z6EfKzMsA
Everything you need to know⏬ pic.twitter.com/Z8tFUG0nCH
— BounceBit (@bounce_bit) November 12, 2024
Founder and CEO of BounceBit, Jack Lu, said in a press release that nowadays there is an emerging demand to “bridge the gap between CeFi and DeFi.”
“Our CeDeFi V2 platform is designed to leverage the liquidity of centralized exchanges while incorporating the transparency of decentralized systems,” said Lu.
The upgrade offers two features: asset management and liquidity management. Asset management allows users the ability to access yields through different chains and cryptocurrencies through centralized market structures.
On the other hand, BounceBit also makes use of centralized exchange liquidity to speed up execution and improve upon capital efficiency, especially when compared to the pace of other decentralized exchanges.
Additionally, Lu also acknowledge security concerns that become a barrier for investors looking to enter the crypto sphere. In order to solve this issue, BounceBit’s upgrade streamlines the on-chain process of bridging cryptocurrencies to reduce potential risks that come with switching chains.
“There’s a clear demand for secure platforms, as evidenced by the growth in custody solutions even during market downturns. CeDeFi V2 is positioned to meet this demand,” said Lu.
On May 2020, BounceBit announced its plans to merge the structure and liquidity of centralized exchanges like Coinbase while building decentralized infrastructure for Bitcoin. This provided the foundation for its recent CeDeFi V2 upgrade.
BounceBit was launched as a Bitcoin restaking startup in 2023. Supported by major industry players like Binance, Blockchain Capital, and Breyer Capital, the platform aims to enhance asset and liquidity management for institutional investors and large-scale traders.
This article first appeared at crypto.news
