{"id":27486,"date":"2025-05-19T14:01:53","date_gmt":"2025-05-19T14:01:53","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=27486"},"modified":"2025-05-19T14:01:53","modified_gmt":"2025-05-19T14:01:53","slug":"bouncebit-pilots-bitcoin-trading-strategy-using-blackrocks-buidl-as-collateral","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=27486","title":{"rendered":"BounceBit Pilots Bitcoin Trading Strategy Using BlackRock’s BUIDL as Collateral"},"content":{"rendered":"
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BounceBit, a crypto infrastructure provider using features from both centralized (CeFi) and decentralized finance (DeFi), has executed a bitcoin (BTC) derivatives trading strategy using BlackRock’s yield-generating tokenized money market fund, BUIDL, to enhance returns.<\/p>\n

The strategy, to be rolled out to institutions and retail users, consisted of two main components: a bitcoin basis trade, involving a long position in the spot market while shorting futures, and a short position in BTC put options, both collateralized by BUIDL tokens.<\/p>\n

The basis trade, also known as cash and carry arbitrage, alone generated an annualized yield of 4.7%, with put option writing contributing an additional 15%. Combined with the 4.25% return from BUIDL used as collateral, the total yield exceeded 24%.<\/p>\n

Integrating BUIDL as collateral helped generate a higher return than strategies collateralized by stablecoins, which do not generate any return.<\/p>\n

“This strategy allows investors to capture both Treasury Bill yields and funding rate arbitrage returns,” Jack Lu, founder and CEO of BounceBit said in a press release exclusively shared with CoinDesk. <\/p>\n

“BounceBit bridges the gap between Western real-world asset issuers and Asian crypto trading infrastructure, providing new options for yield generation,” Lu said.<\/p>\n

BounceBit<\/a> is the native BTC restaking chain secured by staking both bitcoin and BounceBit tokens. The network allows BTC holders to earn yields through native validator staking, DeFi ecosystem and a CeFi-like mechanism powered by Ceffu and Mainnet Digital. As of writing, cryptocurrencies worth over $500 million were locked <\/a>on BounceBit.<\/p>\n

BounceBit plans to roll out the BUIDL-collateralised strategy to institutional and retail users soon. “The successful pilot is a proof of concept to our new product line BB Prime, which will be available to both retail and institutional users,” BounceBit’s spokesperson told CoinDesk.<\/p>\n

“This strategy underpins BB Prime as a new class of CeDeFi applications built on top of RWAs which are traditionally troubled by a lack of utilities beyond just holding for t-bill yield, hindering mass adoption,” the spokesperson added.<\/p>\n

BUIDL, launched in March 2024 by Securitize and BlackRock, is a tokenized investment fund operating on multiple blockchains, including Ethereum, Aptos and Polygon. The token, currently boasting a market cap of $2.88 billion, is backed by short-term U.S. government bonds, boasting a stable value pegged at one dollar per token.<\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

BounceBit, a crypto infrastructure provider using features from both centralized (CeFi) and decentralized finance (DeFi), has executed a bitcoin (BTC) derivatives trading strategy using BlackRock’s yield-generating tokenized money market fund, BUIDL, to enhance returns. The strategy, to be rolled out to institutions and retail users, consisted of two main components: a bitcoin basis trade, involving […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-27486","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/27486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27486"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/27486\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}