BounceBit has just completed testing a Bitcoin Derivative trading strategy using BUIDL Token from the BlackRock BUIDL Fund as collateral, with an annual yield exceeding 24%, according to a report from CoinDesk cited by ChainCatcher.
This strategy combines Bitcoin price difference trading (spot buying and short selling futures contracts) with selling BTC put options. The entire operation is collateralized by BUIDL Token – a crypto asset representing US Treasury bonds, issued by BlackRock.
The total annual profit of the strategy comes from three sources:
Bitcoin price difference trading generates a yield of around 4.7%
Put option strategy contributes a yield of around 15%
BUIDL Token itself creates a yield of 4.25% from US government bonds
This model provides significantly higher capital efficiency compared to using non-interest-bearing stablecoins as collateral, which is the current common method in crypto Derivative trading strategies.
Jack Lu – BounceBit's founder – stated that this strategy offers a new option for investors, combining stable yields from US Treasury bonds and opportunities to profit from price differences in the crypto market. This is an important step in more effectively integrating traditional and digital assets.
BounceBit plans to widely deploy this strategy for both institutional and individual investors through a new product line called BB Prime. The strategy not only helps optimize yields but also opens up a creative and effective approach to DeFi combined with traditional financial assets.
