BounceBit Partners With Ceffu, Integrates MirrorX for Off-Exchange Settlement

2024-04-01  •  3 min read

Ceffu is thrilled to announce that BTC restaking protocol BounceBit has chosen Ceffu’s MirrorX solution to support its execution of arbitrage strategies with off-exchange settlement on the world’s largest centralized exchange. 

MirrorX allows institutional clients to trade on the Binance Exchange by delegating or undelegating their assets to and from the exchange without having to transfer their own assets over. Mirrored assets continually remain under the custody of Ceffu, thus minimizing counterparty exposure. 

Upon mirroring, BounceBit unlocks access to the features of the Binance Exchange, including derivatives trading on the industry's most liquid orderbook. MirrorX ensures off-chain settlements at T+1, guaranteeing prompt reconciliation of all positions. 

This robust process is especially crucial for institutional clients like BounceBit, who seek to optimize yield using delta-neutral funding rate arbitrage. This strategy necessitates regular modifications in position sizes, corresponding to BTC deposit or withdrawal actions.

“Ceffu has proven to be the industry standard for custody solutions and is the perfect solution for our digital asset needs. Off-exchange settlement helps us reduce counterparty risk so that we can provide our users with the highest standards of risk management.” – Jack Lu, CEO & Founder, BounceBit

BounceBit’s Layer 1 chain utilizes Ceffu’s MPC-backed custodial services as the base of its ecosystem. By allowing several institutional fund managers to use MirrorX’s integration, users are able to opt into earning yield through delta-neutral Funding Rate Arbitrage on the Binance Exchange. This mechanism requires constant decreases and increases of position sizes, as BTC is deposited or withdrawn.

“It’s a great pleasure to be fostering synergies alongside innovative protocols like BounceBit in this rapidly evolving landscape. By leveraging MirrorX, we provide a secured avenue for BounceBit to amplify their yield potential with minimal risks - an advantageous enhancement for their offerings and community.” – Ian Loh, CEO, Ceffu

Deep liquidity without compromising on security

To learn more about how Ceffu’s custody and liquidity solutions can help drive your business forward, contact us using our institutional form.

About BounceBit

BounceBit is a Bitcoin restaking protocol, laying the groundwork for diverse restaking products, all secured under the regulated custody of Mainnet Digital and Ceffu.

The BounceBit chain, an exemplar of a restaking product within the BounceBit network, operates as a PoS Layer 1, fortified by validators who stake both BTC and BounceBit’s local token. This dual-token system harnesses native Bitcoin's security and blends it seamlessly with full EVM compatibility.

Essential infrastructure within the ecosystem such as bridges and oracles are underpinned by restaked BTC. By marrying traditional centralized finance with decentralized finance in an inventive framework, BounceBit enables Bitcoin holders to maximize yield across various networks.

About Ceffu

Ceffu is a compliant, institutional-grade custody platform offering custody and liquidity solutions that are ISO 27001 & 27701 certified and SOC Type 1 & Type 2 attested. Its multi-party computation (MPC) technology, combined with a customizable multi-approval scheme, provides bespoke solutions allowing institutional clients to safely store and manage their digital assets.

Institutions also benefit from Ceffu’s secure gateway to a wide range of liquidity products within the Binance ecosystem as Binance’s institutional custody partner through MirrorX, its off-exchange settlement solution.

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