securityarchitecture

Security by Design: Dual Staking, Slashing, and Institutional Risk Mitigation🛡️
(Risk Management and Enhanced Security Measures)

In a system that handles restaked Bitcoin and institutional assets, security is paramount. BounceBit employs a layered risk management approach:

Dual-Token Slashing: The Dual-Token PoS requires validators to stake both BB and BBTC. This introduces an advanced slashing mechanism where malicious behavior or downtime results in penalties against both staked assets, making attacks significantly more expensive and economically irrational.

Institutional-Grade Custody: The reliance on regulated custodians for the underlying BTC provides a layer of security and auditability that is not available in pure-DeFi models, mitigating the risk associated with off-chain yield strategies.

Shared Security Client (SSC) Model: BounceBit's design supports the eventual expansion of the shared security paradigm, where restaked assets can be used to secure various sidechains, data availability layers, and oracle networks, further distributing security and capital efficiency across the broader ecosystem.

#Slashing #RiskManagement #SecurityArchitecture #BounceBitPrime #Compliance $BB @BounceBit