BounceBit Launches New BTC Derivatives Trading Strategy, Leveraging BlackRock's BUIDL Fund Tokenization

BounceBit, a pioneering cryptocurrency infrastructure platform that combines centralized finance (CeFi) and decentralized finance (DeFi), has officially launched a new promising bitcoin derivatives trading strategy (BTC). This strategy uses BUIDL – a token representing a money market fund backed by short-term US government bonds, issued by BlackRock and Securitize. Leverage Real Assets to Earn Profits on Crypto Infrastructure This new trading strategy is part of the BB Prime product line – a flagship initiative of BounceBit aimed at expanding the bridge between real assets (Real World Assets – RWA) and the cryptocurrency ecosystem. By using BUIDL tokens as collateral, BounceBit offers a yield generation model that outperforms traditional methods using non-yielding stablecoins. According to the founder and CEO of BounceBit, Jack Lu, the new strategy helps investors gain double benefits: from the stable yield of the collateral asset ( U.S. government bonds ) and from profit opportunities in the cryptocurrency derivatives market. He shared: "This strategy allows investors to simultaneously benefit from the yields of short-term U.S. government bonds and profits from arbitrage based on funding fees. This is the next step in connecting real asset issuers in the West with the rapidly developing cryptocurrency trading infrastructure in Asia." Trading Strategy Details This strategy consists of two main components, both collateralized by BUIDL tokens: BTC price spread trading (Basis Trade) – also known as Cash and Carry Arbitrage:

Investors buy BTC on the spot market while simultaneously selling BTC futures (futures). This strategy exploits the difference between the spot price and the futures price, generating an annual yield of about 4.7%. Selling put options (Put Options):

Investors sell put options on BTC, earning option fees from buyers. This is a way to increase profits for the investment portfolio with controlled risk. This part contributes an additional 15% yield per year. In addition, BUIDL – the token used as collateral – also generates a basic yield of 4.25% per year, as it is backed by U.S. government bonds.

Combined yield: Over 24%/year, a very attractive figure in the context of global interest rates remaining high, but few traditional financial products can harness such a combination. The Power of BUIDL: Tokenization of Real Assets BUIDL is a tokenized fund launched by BlackRock – the largest asset management company in the world – in collaboration with Securitize, starting from March 2024. This token operates across multiple chains (Ethereum, Aptos, Polygon), has a market capitalization of 2.88 billion USD, and consistently maintains a stable price of 1 USD/token, thanks to being fully backed by short-term US government bonds. Unlike traditional stablecoins like USDT or USDC, BUIDL actually generates stable yields, making it an ideal platform to serve as collateral in complex strategies such as BTC derivatives. Towards Institutional & Retail Investors BounceBit announced that after successful testing, the strategy of using BUIDL as collateral will be officially launched for both institutional clients and retail investors in the near future. This is seen as a strategic move to popularize high-efficiency RWA investment products for all types of investors. As of now, the total value of assets locked (TVL) on BounceBit has exceeded 500 million USD, indicating the increasing trust of the market in the hybrid CeDeFi model between CeFi and DeFi. Summary Prime brings institutional profit strategies on-chain. Built in collaboration with investment fund managers like BlackRock and Franklin Templeton. BounceBit's new strategy is a clear testament to the integration potential between traditional assets and blockchain technology. The combination of yields from real assets (BUIDL) with intelligent derivatives trading strategies in the crypto market opens up an exciting new direction for both institutional and individual investors seeking sustainable profits in the era of decentralized finance. @bounce_bit #BounceBitPrime $BB {spot}(BBUSDT)