BounceBit trials Bitcoin trading strategy, collateralized by BlackRock BUIDL

ChainCatcher news, according to CoinDesk, BounceBit has completed a Bitcoin derivatives strategy test based on the BlackRock BUIDL fund, with an annualized return exceeding 24%.

The strategy includes Bitcoin basis trading (long spot + short futures) and selling BTC put options, both using BUIDL tokens as collateral. The strategy's returns consist of three parts: 4.7% annualized from basis trading, 15% from the options strategy, plus 4.25% U.S. Treasury yield from BUIDL itself. Compared to collateralized stablecoin solutions with no yield, this model significantly enhances capital efficiency.

BounceBit founder Jack Lu stated that this provides investors with a new option to simultaneously gain U.S. Treasury yields and arbitrage opportunities in the crypto market. BounceBit plans to open this strategy to institutional and retail users through its new product line BB Prime.