Practitioners in the cross-border e-commerce industry are facing a common dilemma: how to effectively manage forex funds and mitigate exchange rate risks. A merchant in Yiwu who has been engaged in cross-border e-commerce for 5 years recently shared his experience, revealing the widespread difficulties in this industry.

This merchant mainly supplies small commodities to supermarkets in Europe and the United States. Last year, in order to cope with the potential profit loss from the appreciation of the RMB, he exchanged part of his payment for 0.9 Bitcoin (BTC), originally intending to use it as a reserve for his cross-border business. However, this decision brought him unexpected troubles.

Firstly, this BTC fund cannot generate any returns, yet he needs to constantly pay attention to the Exchange Rate fluctuations. Last year, the renminbi appreciated by 2%, which meant he lost 1800 USD. Secondly, traditional BTC financial products often require a high investment threshold, and the amount of BTC he holds is not sufficient to meet these requirements. In addition, the complex DeFi operations are clearly a significant challenge for him, as he needs to handle orders and logistics every day. What worries him the most is that if he cannot cash out the BTC in a timely manner when he urgently needs funds, it may affect the execution of important orders.

However, in July this year, an emerging platform called BounceBit has attracted the attention of industry insiders. According to another merchant engaged in cross-border trade, the platform offers a new solution: cross-border turnover re-staking. This method has a low threshold, requiring only 0.1 BTC to participate in the investment. It not only provides an Exchange Rate alert feature but also allows for same-day redemption of funds when needed, while also generating certain returns to offset logistics costs.

Despite initial skepticism towards this new approach, more and more cross-border e-commerce practitioners have begun to pay attention to this new type of investment after witnessing the operational process firsthand. The 'Cross-Border Merchant Zone' on the BounceBit platform claims that they have connected Aave's cross-border low-risk assets and Fidelity's short-term forex hedging tools, providing users with an option that can both manage risks and generate returns.

Whether this emerging BTC investment method can truly solve the currency risk issues faced by cross-border e-commerce practitioners remains to be seen. However, it undoubtedly provides a new perspective for the industry, which may help more merchants better cope with the complex and ever-changing international trade environment.