The BitFi Solution: A CeDeFi Hybrid Approach

BitFi's CeDeFi approach distinguishes itself by focusing on delivering native yield to users.

We recognize that while funding rate arbitrage can provide stable returns, it requires specialized expertise and robust risk management, limiting access for the BTC holder and Stablecoins holder. BitFi simplifies this process. Leveraging Ceffu's MirrorX solution, we enable mirrored trading without requiring users to transfer assets to centralized exchanges.

This ensures ample market depth while significantly reducing platform risk and providing users with direct access to arbitrage strategies. By combining the strengths of CeFi and DeFi, BitFi creates a multi-chain yield platform for Bitcoin & stablecoins holders.

Currently, we support deposit and withdrawal of BTC assets across major blockchains including Bitcoin, Ethereum, and Binance Smart Chain. We also accept deposits of USDT and USDC on Ethereum so users can mint bfUSD directly from those stablecoins, and we plan to expand support to additional blockchains in the future.

Liquidity Solutions with bfBTC and bfUSD

Unlike typical CeFi platforms, BitFi unlocks liquidity staking yields for Bitcoin. In addition to CeFi-like custodial yield solutions, BitFi leverages on-chain ecosystems to provide users with enhanced DeFi yields.

Upon depositing assets on the BitFi platform, users receive corresponding liquidity staking tokens, bfBTC and bfUSD. These ERC-20 compatible tokens seamlessly integrate with various DeFi protocols, unlocking multiple yield opportunities.

While user assets are securely held under BitFi's custody solution, the received bfBTC and bfUSD can freely circulate within the ecosystem, enabling participation in DeFi mining, liquidity provision, governance, and other yield-generating activities.

This innovative mechanism allows users to generate multiple layers of yield from a single asset, significantly improving capital efficiency.

bfBTC

bfBTC is minted whenever BTC is bridged on-chain and locked under BitFi's custody. The protocol routes those assets through MirrorX-powered arbitrage, cross-chain liquidity provisioning, and DeFi staking, then feeds the resulting revenue back into the bfBTC pool. Because the exchange ratio grows with the revenue distributed to bfBTC holders, the token delivers a native BTC yield while remaining redeemable 1:1 for underlying BTC across multiple chains.

bfUSD

bfUSD is a fully collateralized USD stablecoin minted against USDT and USDC using Chainlink-secured pricing. Holders can stake bfUSD into the Horizon pool (hbfUSD, low risk) or the Pulsar pool (pbfUSD, higher yield); both operate as ERC-4626 vaults and track a per-epoch ratio. Yield is distributed from protocol revenue, the insurance buffer, and cross-pool boosts (horizon revenue supports pulsar and pulsar principal backstops horizon drawdowns). Standard and instant redemption paths keep the peg while letting users collect 15%–22% target APYs depending on their risk profile.