Bouncebit, a crypto infrastructure provider that uses functions of both centralized (CEFI) and decentralized finances (Defi), has carried out a Bitcoin (BTC) derivatives trading strategy using BlackRock’s yield-generating money market fund, to improve the return.
The strategy, which must be rolled out to institutions and retail users, consisted of two main components: a Bitcoin -Basis trade, in which a long position on the spot market was involved during the shortening of futures, and a short position in BTC PUT options, both collateral by Buidl -Tokens.
The basic trade, also known as cash and arbitration, only generated an annual yield of 4.7%, with the writing of well option to contributed an additional 15%. Combined with the efficiency of 4.25% from Buidl that was used as collateral, the total yield was 24%.
Integrating Puidl as collateral has contributed to the generation of a higher return than strategies that are collateral by Stablecoins, which do not generate a return.
“This strategy enables investors to record both the proceeds of the Treasury Bill and the Arbitrage Return Financing Center,” said Jack Lu, founder and CEO of Bouncecitbit in a press release that is only shared with Coindesk.
“Bouncebit bridges the gap between Western Uitwigen in practice and Asian crypto-trading infrastructure, which offers new options for generating yield,” Lu said.
Bouncebit is the native BTC -repairing chain that is protected by both Bitcoin and Bouncebit -Tokens. With the network, BTC holders can achieve yields via native validator setting, defi-eco system and a CEFI-like mechanism powered by Ceffu and Mavet Digital. From the writing, cryptocurrencies worth more than $ 500 million were locked up on Bouncebit.
Bouncebit is planning to roll out the Buidl-collateral strategy for institutional and retail users soon. “The successful pilot is a proof of concept for our new BB Prime product line, which will be available for both retail and institutional users,” Bouncebit’s spokesperson told Coindesk.
“This strategy supports BB Prime as a new class of Cedefi applications built on top of RWAS, which are traditionally disturbed by a lack of utilities that go beyond T-Bill yields, which hinders mass adoption,” the spokesperson added.
Buidl, launched in March 2024 by Securitize and BlackRock, is a tokenized investment fund that is active on several block chains, including Ethereum, Aptos and Polygon. Token, which currently has a market capitalization of $ 2.88 billion, is supported by short -term tires in the US, with a stable value linked to one dollar per token.
