Right, So Here’s the Gist:
- BounceBit, bless their cotton socks, apparently managed to wrangle a Bitcoin derivatives strategy with BlackRock’s BUIDL thingy. Total yield? Over 24%. Now, that’s what I call a return, eh? 💰
- They did some mumbo-jumbo involving a Bitcoin basis trade and shorting BTC put options, all propped up by BUIDL tokens. Apparently, it’s better than using stablecoins, which, let’s face it, are about as exciting as watching paint dry. 😴
- BounceBit plans to unleash this BUIDL-collateralized strategy on the unsuspecting masses, both institutional and retail. A new class of CeDeFi applications, they say. Sounds like something out of a sci-fi novel, doesn’t it? 🚀
BounceBit, a crypto infrastructure provider – which sounds like they build bridges out of digital gold – is mixing centralized (CeFi) and decentralized finance (DeFi), like a dodgy cocktail. They’ve been fiddling with Bitcoin (BTC) derivatives, using BlackRock’s yield-generating tokenized money market fund, BUIDL, because, why not? 🤔
The plan, which they’re unleashing on institutions and retail users, involves two main ingredients: a Bitcoin basis trade, where they go long in the spot market while shorting futures (sounds like a recipe for disaster if you ask me), and a short position in BTC put options, all held together by BUIDL tokens. It’s like building a house of cards, but with more jargon. 🃏
The basis trade, or “cash and carry arbitrage” if you’re feeling fancy, made a yearly yield of 4.7%. Put option writing added another 15%. Slap on the 4.25% from BUIDL, and you’re looking at over 24%. It’s enough to make a goblin blush. 👹
Using BUIDL as collateral is supposedly better than using stablecoins, which, as we’ve established, are about as thrilling as a tax audit. 🧾
“This strategy allows investors to capture both Treasury Bill yields and funding rate arbitrage returns,” said Jack Lu, founder and CEO of BounceBit, in a press release so exclusive, it probably had velvet ropes. 🎤
“BounceBit bridges the gap between Western real-world asset issuers and Asian crypto trading infrastructure, providing new options for yield generation,” Lu added. Which basically means they’re trying to make money, like everyone else. 💸
BounceBit is the native BTC restaking chain secured by staking both Bitcoin and BounceBit tokens. It’s like staking potatoes to secure your potato farm. The network lets BTC holders earn yields through native validator staking, DeFi, and a CeFi-like mechanism powered by Ceffu and Mainnet Digital. As of writing, over $500 million worth of cryptocurrencies were locked on BounceBit. Let’s hope they have good locks. 🔒
BounceBit plans to roll out the BUIDL-collateralised strategy 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,” a BounceBit spokesperson told CoinDesk. Because everyone needs a BB Prime in their lives. 🥇
“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. Which is a fancy way of saying they’re trying to make it useful. 🤔
BUIDL, launched in March 2024 by Securitize and BlackRock, is a tokenized investment fund on multiple blockchains, including Ethereum, Aptos, and Polygon. The token, with 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. So, it’s basically digital money, but with extra steps. 🪙
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2025-05-19 17:16