BounceBit’s dual-token staking (BB and BBTC) on its PoS Layer 1 exposes users to mainnet asset depreciation risks, particularly with BB’s volatility. To hedge via a centralized exchange (CEX), users can short BB futures or perpetual swaps on platforms like Binance, which supports BB trading. First, calculate the BB exposure from staking (e.g., 1,000 BB staked). Then, short an equivalent value on the CEX, locking in the current price. If BB depreciates, gains from the short position offset staking losses. For BBTC, pegged to BTC, hedge by shorting BTC futures if BTC’s price drops. Monitor funding rates and adjust positions to avoid liquidation. This strategy leverages CeDeFi’s transparency, as noted in BounceBit’s docs, but risks include CEX counterparty issues and high funding costs during volatile markets. Always maintain sufficient margin to manage risks effectively.

Hedging BB and BBTC staking risks with short positions on a centralized exchange can help mitigate asset depreciation. Monitoring prices, funding rates, and margin levels is crucial for risk management in volatile markets. CeDeFi transparency is key, but be aware of counterparty risks and funding costs. Stay informed and adjust positions prudently to avoid liquidation.