Bouncebit, a crypto-infrastructure provider using functions from both centralized (CEFI) and decentralized funding (DEFI), has performed a Bitcoin (BTC) derivative trading strategy using Blackrock’s dividend-generating tokenized money market fund, buidl, to improve the return.
The strategy to be rolled out to institutions and retail users consisted of two main components: a Bitcoin base commercial that involved a long position in the spot market, while futures and a short position in BTC put options, both collateralized by Buidl tokens.
The basic trade, also known as cash and carrier, only generated an annual yield of 4.7%, with put option writing by an additional 15%. Combined with the 4.25% return from Buidl, which was used as security, the total yield exceeded 24%.
Integrating BUIDL as a collateral helped to create a higher return than strategies that are fitted with stablecoins that do not generate any return.
“This strategy allows investors to capture both Treasury Bill yields and financing rate arbitrage returns,” said Jack Lu, founder and CEO of Bouncebit in a press release that is exclusively shared with Coindesk.
“Bouncebit bridges the space between the Western assets in the real world and Asian Crypto-trade infrastructure and provide new opportunities for yield generation,” Lu said.
Bouncebit is the native BTC rest chain secured by putting both Bitcoin and Bouncebit -Tokens. The network allows BTC holders to earn yields through native validator tackle, defi-ecosystem and a CEFI-like mechanism driven by CEFFU and MAINNET Digital. From writing, cryptocurrencies worth over $ 500 million were locked on bouncebit.
Bouncebit is planning to roll the buidl-collateralized strategy for institutional and retail users soon. “The successful pilot is proof of concept for our new product line BB Prime, which will be available to both retail and institutional users,” Bouncebit’s spokesman told Coindesk.
“This strategy supports BB Prime as a new class of cedefi applications built on the top of RWAS, which is traditionally troubled by a lack of tools in addition to just keeping T-billing yield, which prevents mass recording,” the spokesman added.
BUIDL, launched in March 2024 by Securitize and Blackrock, is a tokenized investment fund operating on several blockchains, including Ethereum, Aptos and Polygon. The token, which currently boasts a market capital of $ 2.88 billion, is supported by short -term US government bonds that boast a stable value tied to one dollar per year. Token.
