BounceBit Documentation
HomepagePortalBounceClub
  • 🔳Welcome to BounceBit
    • BounceBit's Philosophy
    • Challenges Addressed By BounceBit
    • BounceClub: Build on BounceBit
  • CeDeFi
    • 🏦BounceBit CeFi + DeFi
      • Infrastructure
      • Yield Structure
    • 📊CeDeFi Yield
      • Funding Rate Arbitrage
      • Fixed
      • Auto
      • Manual
      • Integration of Node Staking Rewards
      • Rebasing Mechanism
      • Asset Manager Directory
    • 🌎RWA (Real World Assets)
      • RWA in Yield Generation
      • RWA on BounceBit Chain
    • Subscription & Redemption Rules
      • Auto & Manual
      • Fixed
    • Security Risk Management
    • dApp
      • ⚡Superfast
      • Ethena <> BounceBit
      • Convert
  • Infrastructure
    • ⛓️BounceBit PoS Chain
      • Dual-Token Staking Consensus
      • EVM Compatibility and Developer Support
    • 🔐Shared Security Clients
    • 🌉BTC Bridge
    • 🔮Oracle
      • Price Feed On-chain
      • Price Feed Off-chain
      • Data Feed Addresses
    • 💽Ecosystem Integrations
  • ♣️BounceClub
    • Intro
    • 🫂BounceClub Membership
    • MEME
    • Quanto
    • AI Agents
  • Token
    • 🏦BounceBit Tokenomics
      • Key Terms
      • 🪙BB Coin
      • Liquid Staking Token (stBBTC & stBB)
      • Bitcoin on BounceBit (BBTC)
      • Stablecoins on BounceBit (BBUSD)
    • 🧱Staking Delegation
    • 💧Liquid Staking
    • 📤Liquid Custody
    • 🍞Bread and Butter (BB Cross-chain Liquidity)
  • User Guides
    • General
      • How to Get BTCB from Binance
        • How to Transfer BTCB to your Binance Web3 Wallet
      • How to Use the Testnet Faucet
      • How to Add BounceBit Network to Your Wallet
    • 🌉Bridging
      • Portal Bridge
      • MultiBit Bridge
    • BounceClub V2
      • How to Launch a Memecoin
      • Arcade
      • DeFi
        • Quanto
        • Stablecoin
      • AI Agents
    • 📊CeDeFi
      • How to Withdraw/Redeem Your LCT
      • How to Subscribe to CeDeFi (V2)
      • How to Unsubscribe from CeDeFi (V2)
      • How to Wrap / How to get BBTC, BBUSD
      • Ethena <> BounceBit
      • Superfast Trading Guide
    • 💠Node Staking and Delegation
      • How to Stake/Unstake on Portal
      • How to Stake/Unstake BB and BBTC (Delegation)
  • Assets
    • 🪪Brand Guidelines
      • 🎨Logo Kit
    • ✅BounceBit's TVL
    • ✅Smart Contract Audit Report
    • First BounceBit's BTC TVL Audit Report
  • Developer Resources
    • BounceBit Mainnet Node Setup
      • Cosmovisor
    • Chain Info
    • RPC Support
    • How to Verify Smart Contracts
    • How to Withdraw Validator Commission
  • OTHER
    • 🌐BounceBit Official Social Media Channels
    • Terms of Use
    • Privacy Policy
Powered by GitBook
On this page
  • Dual-Yield Mechanism
  • Technical Implementation
  • Credit Line Management
  1. CeDeFi
  2. RWA (Real World Assets)

RWA in Yield Generation

Coming in 2025

Dual-Yield Mechanism

RWA tokens like USDY, USYC function as both yield-generating assets and trading collateral within the BounceBit ecosystem. This dual functionality enables compound yield generation through parallel strategies:

  1. The underlying RWA yield continues to accrue from traditional financial instruments.

  2. The tokenized RWA simultaneously serves as collateral for delta-neutral trading strategies.

Technical Implementation

When using RWAs for funding rate arbitrage, the system maintains specific parameters:

The RWA tokens (e.g., USYC) remain as collateral in regulated custody while their value supports trading positions. This creates a secured credit line that enables funding rate arbitrage execution without liquidating the underlying RWA position. The original RWA yield (such as from short-term U.S. Treasuries in USDY's case) continues generating returns throughout the strategy's duration.

Position sizing and risk management adapt to RWA-specific factors:

  • Collateral value accounting for RWA market pricing

  • Position limits reflecting underlying RWA liquidity

  • Risk parameters adjusted for RWA volatility profiles

Credit Line Management

The system's credit architecture allows users to:

  • Maintain exposure to RWA yields

  • Execute delta-neutral strategies using the asset's collateral value

This structure effectively compounds returns while maintaining the security of regulated RWA custody.

PreviousRWA (Real World Assets)NextRWA on BounceBit Chain

Last updated 4 months ago

🌎