Introducing b-Tokens: tokenized basis trades
TL;DR
- Derive is launching Basis Trade Vaults and b Tokens, giving users a way to earn yield while keeping full BTC or ETH exposure.
- The vault automates a classic basis trade, collateralizing LBTC and weETH to capture perp funding yield, staking rewards, and restaking points; without selling the base asset.
- b Tokens are fully composable ERC20s, enabling the yield-bearing, hedged positions to be used across DeFi protocols.
- We’re starting with bLBTC and bweETH, built for the Lombard and EtherFi ecosystems, with plans to scale across DeFi venues in the coming months.
Tokenizing the Basis Trade
You’re bullish BTC. You’re bullish ETH. But there’s no reason to let them sit idle while you wait for the next leg up.
The Basis Trade Vaults let you put your BTC and ETH to work without compromising your exposure. You deposit LBTC or weETH, and the vault automatically executes a well-worn hedge fund strategy on your behalf. The mechanics are simple:
- Borrow USDC against your deposit.
- Use that USDC to buy more BTC or ETH.
- Short perpetual futures on Derive to hedge.
- Collect yield from perp funding, staking rewards, and restaking points.
Everything is managed automatically, onchain, and transparently. You don’t need to watch funding rates, micromanage leverage, or worry about liquidation risk. Just stack BTC with your BTC. Stack ETH with your ETH.
Why Tokenized Basis Trades?
The crypto derivatives market is no longer the playground of centralized exchanges and hedge funds. Ethereum generalized financial markets, and now Derive is doing the same for derivatives yield.
By packaging the basis trade into a fungible ERC20 (b Tokens) users can finally access a structured product that compounds yield and stays composable across DeFi. These tokens don’t just sit in a vault; they flow.
As b Tokens grow in adoption, expect to see them:
- Integrated into lending protocols (Euler, Morpho, Fluid)
- Traded in secondary markets
- Used as collateral in leveraged yield strategies
- Deployed in fixed yield protocols like Pendle and Spectra
What starts as a yield optimization becomes an entirely new building block for DeFi.
A New Asset Class, Built On Derive
Why can Derive uniquely enable this?
Because we’re the only protocol in DeFi with permissionless, onchain settlement for both perpetuals and options, coupled with a unified risk engine that allows cross-margin and cross-asset collateralization. This infrastructure makes it trivial to automate complex derivatives strategies and wrap them into ERC20 tokens without sacrificing transparency or control.
Basis traded tokens are just the start. Over time, you’ll see covered call strategies, fixed-income derivatives, and more, all tokenized, automated, and composable. This is not the endgame; it’s the first step toward turning derivatives yield into a fully liquid, tradable asset class.
Want to See the Numbers?
For a deeper breakdown of how the Basis Trade Vault works; including leverage ratios, risk guardrails, and funding dynamics. Read the full docs here.