BOUNCEBIT, a provider of cryptographic infrastructure using centralized (CEFI) and decentralized finance (DEFI) features, has executed a Bitcoin derivatives (BTC) trading strategy using the BlackRock, BUIDL Monetary Market Fund, to improve yields.
The strategy, to be deployed to retail institutions and users, consisted of two main components: a Bitcoin basic trade, involving a long position in the cash market in short-circuit, and a short position in Put BTC options, both guaranteed by Buidl tokens.
The basic trade, also known as Cash and Carry Arbitration, alone generated an annualized return of 4.7%, with a drafting of put options contributing to an additional 15%. Combined with the yield of 4.25% of BUIDL used as a warranty, the total yield exceeded 24%.
The integration of BUIDL as a guarantee has helped generate a higher return than the strategies guaranteed by the Stablecoins, which do not generate any return.
“This strategy allows investors to capture both cash ticket yields and financing rate arbitration yields,” said Jack Lu, founder and CEO of Bouncebit in a press release shared exclusively with Coindesk.
“Bouncebit fills the gap between the emitters of real western assets and the trading infrastructure of Asian crypto, offering new options for the creation of elements,” said read.
BOUNCEBIT is the native BTC native BTC chain while punctuating both Bitcoin and BOUNCEBIT tokens. The network allows BTC holders to obtain yields thanks to the implementation of the native validator, the DEFI ecosystem and a CEFI type mechanism propelled by Ceffu and Mainnet Digital. During the editorial staff, cryptocurrencies worth more than $ 500 million were locked on Bouncebit.
BOUNCEBIT plans to deploy the COLLATEDISIE BUIDL strategy to institutional and detail users. “The successful pilot is proof of concept of our new range of BB Prime products, which will be available for users of retail and institutional sales,” the spokesperson for Bouncebit in Coindesk told.
“This strategy underpins BB prevails as a new class of Cedefi applications built above the RWAs which are traditionally disturbed by a lack of public services beyond the simple conservation of the T-bill yield, hampering mass adoption,” added the spokesperson.
Buidl, launched in March 2024 by Securitize and Blackrock, is an investment fund in Tokenized operating on several blockchains, notably Ethereum, Aptos and Polygon. The token, with a market capitalization currently of $ 2.88 billion, is supported by short -term US state bonds, offering a stable value fixed to a dollar per token.
