BlackRock’s BUIDL Enabled as Collateral for Enhanced Yield Strategies

Blackrock ’s USD Institutional Digital Liquidity Fund’s (BUIDL) was used as collateral in a derivatives trade for the first time, opening up to investors more ways to use the on-chain fund, according to QCP Group, a trading and market-making firm in Singapore The trade, which was executed by Securitize Credit and QCP, was done through a long-spot, short 6-month futures trade using BUIDL as collateral to yield a cumulative 15%. The return was enabled by BUIDL’s low-risk standing across marketplaces, which allowed Securitize to sell $50,000 puts against the position for an additional 3.6% yield. Through the BUIDL-collateralized Bitcoin basis trade, Securitize transformed its balance sheet BUIDL, which was earning 4.25%, into an open position with more than 18% APY without adding risk. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io