BounceBit launches new protocol upgrade CeDeFi V2

BounceBit’s latest upgrade combines centralized and decentralized funding to create CeDeFi V2, a protocol that provides users with multi-chain support without having to go through the BounceBit chain.

Binance-backed Bitcoin staking startup BounceBit has launched its latest upgrade called CeDeFi, which stands for Decentralized Finance. The platform aims to unite both parties to improve operational efficiency and strengthen security measures.

Shortly after the upgrade launch on November 12, BounceBit saw a 2x increase in inflow consisting of Bitcoin (BTC), Tether (USDT), (ETH), Binance Coin (BNB), and Solana (SOL) transactions; This amount reached 20 million dollars. On CeDeFi V2 multi-chain platform.

The upgrade introduces multi-chain support for ETH, BNB, SOL, and BTC without the need for users to bridge funds via the BounceBit chain.

Other key features included in the upgrade include user flexibility, new Automatic, Fixed and Manual return strategy options, as well as increased 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

Jack Lu, founder and CEO of BounceBit, said in a press release that there is a demand these days to “bridge the gap between CeFi and DeFi.”

“Our CeDeFi V2 platform is designed to leverage the liquidity of centralized exchanges while also incorporating the transparency of decentralized systems,” Lu said.

The upgrade offers two features: asset management and liquidity management. Asset management allows users to access returns through different chains and cryptocurrencies through centralized market structures.

On the other hand, BounceBit also leverages centralized exchange liquidity to speed up execution and improve capital efficiency, especially when compared to other decentralized exchanges.

Additionally, Lu acknowledges security concerns that pose obstacles for investors looking to enter the crypto space. To solve this problem, BounceBit’s upgrade streamlines the process of bridging cryptocurrencies to reduce the potential risks that come with chain switching.

“There is 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.

In May 2020, BounceBit announced plans to combine the structure and liquidity of centralized exchanges like Coinbase while creating decentralized infrastructure for Bitcoin. This formed the basis of the latest CeDeFi V2 upgrade.

BounceBit was launched in 2023 as a Bitcoin repurchase initiative. Backed by major industry players such as Binance, Blockchain Capital and Breyer Capital, the platform aims to improve asset and liquidity management for institutional investors and large-scale traders.