DeFi

Bitcoin Restaking Platform BounceBit Introduces Dual-Yield Strategy with BlackRock’s BUIDL

BounceBit, a centralized Bitcoin restaking protocol that offers institutionalized DeFi investing products, today announced the launch of a new dual-yield strategy through a partnership with BlackRock’s BUIDL.

BounceBit partnered with BlackRock’s Tokenized Fund, popularly known as BUIDL, to integrate BlackRock’s yield-bearing US Treasury bill into its platform.

What is this dual-yield strategy?

This dual-yield strategy is a Bitcoin derivative trading strategy powered by BlackRock’s income-generating tokenized money fund, BUIDL, to enhance profitability.

The strategy, which is set to be introduced to retail and institutional investors, is made up of two key components: a short position in Bitcoin BTC put options and a Bitcoin basis trade that capitalizes on longing in the spot market and shorting in the futures market, both collateralized by BUIDL assets.

As per the report, the basis trade generates an annual return of 4.7% while the put option produces an extra 15%. Together with the 4.25% yield from BUIDL utilized as collateral, the entire return is over 24%.

According to a BounceBit representative, the move to integrate BUIDL is significantly beneficial as it helps produce greater gains than strategies collateralized by stablecoins. This strategy enables investors to capture both Treasury bill returns and Bitcoin derivatives yields.