BounceBit Prime @BounceBit The first vault product recently launched indeed brings some different ideas. It is essentially a user-facing institutional-grade on-chain yield strategy, with the underlying asset being Franklin Templeton's tokenized money market fund Benji, which not only generates basic money market returns but is also managed by a compliant custodian, providing significant endorsements in terms of safety and compliance.
Specifically, after users deposit USDT, @BounceBit the system will automatically purchase Benji and inject it as collateral into the vault, at which point earnings start to accumulate. What’s more noteworthy is that the strategy layer will also use Benji for delta-neutral arbitrage trading, such as funding rate arbitrage. It’s equivalent to having one asset while earning returns on two levels: one from the stable interest of the underlying money fund and the other from the excess returns brought by the strategy.
#BounceBitPrime The entire mechanism is built on the CeDeFi framework, fully transparent and traceable, automatically executed, reducing operational risks. Last week, BounceBit also completed the repurchase of 8.87 million $BB , backed by an annual protocol income of 16 million dollars, demonstrating that the project is serious about value capture and token economics.
Looking back, the truly interesting aspect of BounceBit Prime is its attempt to find a balance between traditional finance and on-chain innovation. Transforming a tokenized fund like Benji, issued by traditional institutions, into collateral usable on-chain retains the original product's safety and yield predictability while adding the flexibility of on-chain strategies.
Currently, the basic yield is around 5%, and with the strategy enhancement, the overall annualized target is expected to fall within the range of 10% to 45%. This design of 'dual-layer returns' clearly enhances capital efficiency, making it especially suitable for investors who pursue stable returns while not wanting to leave their funds idle.
From a broader perspective, RWA (real-world assets) is becoming the next key track in the DeFi space. Collaborating with traditional asset management giants like Franklin Templeton, BounceBit brings assets like short-term government bonds onto the on-chain in a tokenized form, providing users with a new option that does not rely on price fluctuations, with a clear underlying and stable returns.
In the long run, if more traditional assets like bonds and ETFs gradually go on-chain, what BounceBit Prime @BounceBit is doing now may just be the beginning. It is not only aimed at Crypto Native users but also provides a reference template for traditional institutional funds entering the on-chain space—enjoying on-chain yields without sacrificing the compliance guarantees of safety boundaries in traditional finance.
Overall, #BounceBitPrime has made good attempts in asset selection, mechanism design, and yield structure, making it worth keeping an eye on for both individual and institutional investors.
