How Jack Lu Is Changing Crypto With His Bold CeDeFi Vision

• Jack Lu built BounceBit to merge Bitcoin’s safety with DeFi’s flexibility through a hybrid CeDeFi approach.
• He chose Bitcoin over Ethereum for staking because of users’ risk tolerance and consistent profit strategies.

Jack Lu may not be as well-known as Vitalik Buterin or Changpeng Zhao, but in the crypto industry’s inner circle, especially for those in CeDeFi, he is already a regular topic of conversation. Not because of his flamboyant style or controversial tweets, but because of one simple thing: he knows what the market needs, even before the market itself realizes it.

Jack started BounceBit not as a whim or a technology showcase. He saw a real problem—many people have Bitcoin, but don’t know what to do with it other than storing it.

On the other hand, the Ethereum-based DeFi sector was starting to get saturated and less attractive to big capital owners. That’s where the idea came from: what if Bitcoin could “work” like a DeFi asset, but still in a more familiar ecosystem?

Jack Lu: From BTC Staking to Real-World Yield Strategies

BounceBit was born from the idea of ​​combining the security of Bitcoin with the flexibility of the DeFi world. But rather than just copy-pasting the concept, Jack designed it with a hybrid approach: CeDeFi. He knew that many big investors were reluctant to enter a world that was too decentralized—too much risk and too little control. But if it was too centralized, it would just go back to the old style. So, he took the middle path.

Through BounceBit, Jack created a dual-token system: BTC as the main core, and BB as the fuel for the ecosystem. Interestingly, he also opened up opportunities for tokenizing real-world assets, such as US government bonds, as collateral for Bitcoin derivative strategies. His playing style is similar to an institutional investor, but with a touch of Degen ala crypto native.

Furthermore, BounceBit had shocked the staking world because it managed to suck up more than $400 million in a short time. In fact, with the spot-futures arbitrage strategy offered, some users were able to enjoy returns of 30% per year. A number that made TradFi investors shake their heads.

Building Trust in a Hybrid Crypto World

Although the technology is complex, Jack Lu knows one thing: people only want to put their money where they trust. That’s why he actively attends many Web3 forums, including Binance Blockchain Week and several discussions on asset tokenization in the Asian region. He’s not just selling a product, but also selling a vision.

In one forum, he even compared CeDeFi today to Ethereum in 2015. Still new, not perfect, but promising. And judging from the enthusiasm of big VCs who have injected funds into BounceBit—from Blockchain Capital to Breyer Capital—it seems like many agree with him.

However, building a product that touches two sides of the world (TradFi and crypto) is not easy. Unclear regulations, technical risks from restaking, and high expectations from investors all pose their own pressures. But if Jack Lu seems relaxed in public, it might be because he has prepared various backup plans—or maybe he’s just used to living under pressure.

There’s one moment that pretty much describes his way of thinking. When asked why he chose Bitcoin as his focus, not Ethereum or Solana, he simply replied, “Because people hate losing ETH more than BTC. So BTC is more suitable for a strategy that can make a profit every day.” That answer sounds funny, but it’s also profound.

While not everyone is convinced by the CeDeFi concept yet, Jack and his team are moving forward. They’ve even started expanding to networks like Solana to test new speeds and strategies. And recently, they launched BounceBit Trade, a derivatives platform with up to 200x leverage—backed by liquidity from real-world assets.

Will all this work in the long run? No one knows for sure. But given Jack Lu’s track record of being quiet but sharp in reading the wind, many are betting he’s not just a passing fad in crypto history.