BounceBit has launched a bitcoin (BTC) trading strategy using BlackRock's BUIDL fund as collateral, achieving an impressive annualized yield exceeding 24%. The strategy, which includes a bitcoin basis trade—taking a long position in the spot market and shorting futures—along with shorting BTC put options, utilizes BUIDL tokens for collateral to enhance returns compared to stablecoins. The basis trade alone yielded 4.7%, while put option writing added another 15% to the total yield, which also includes a 4.25% return from BUIDL as collateral. This approach allows investors to benefit from Treasury Bill yields and funding rate arbitrage. BounceBit plans to offer this trading strategy to institutional and retail users, presenting it as part of their new product line, BB Prime. BUIDL, a tokenized fund launched by Securitize and BlackRock, operates across multiple blockchains and is backed by U.S. government bonds. Currently, BUIDL has a market cap of $2.88 billion and is pegged at one dollar per token.

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