Foreword: The full bStocks process is here~ Today, follow Mr. Miss to master bStocks.
Before we begin, I want to mention that this guide includes seven chapters covering bStocks introduction, trading, and more. If you are a trading novice, you can follow the order.
If you are a distinguished US stock trader who already understands the fundamentals of the bStocks sector, you can scroll directly to the corresponding chapters and skip the basic introductions.
Introduction to bStocks Basics:
bStocks is a tokenized US stock security service launched by Binance in June 2026. In the simplest terms, it brings US stocks onto the blockchain, allowing crypto users to trade US stock assets 24/7 and seamlessly, just like trading ordinary mainstream tokens.
Example: NVIDIA Stock → NVDAB
You are not buying a share of stock directly in your own name, but a 1:1 anchored on-chain security token corresponding to the US stock. Each bStock is backed by a real share of stock, supported 1:1 by US stocks held by regulated custodians.
**bStocks Core Operating Mechanism and Features:
1/ 1:1 Correspondence with Real Stocks: Every bStock corresponds to one share of real US stock. These stocks are held by regulated custodians, providing 1:1 anchoring and physical backing of real US stocks,** along with proof of collateral. This is among the first batch of tokenized securities included in the FSRA's official listing.
2/ 24-Hour Trading: Trade at any time with no fixed opening hours.
3/ Transferable to On-Chain Wallets: Can be withdrawn to your own wallet to participate in DeFi for future lending, LP, staking, and other on-chain applications.
4/ Fractional Shares Support: Official support for purchasing partial stock exposure with a minimum of approximately $5.
Here is a comparison chart between traditional stocks and bStocks to help you better understand bStocks:
Comparison chart: Traditional Stocks vs. bStocks
After reading the above, some might wonder if this is similar to CFDs?
I want to clarify that bStocks is positioned differently from CFDs. It is not a CFD, nor a traditional stock account, but a type of RWA (Real World Asset).
5/ Supports Dividends and Distributions: Regarding this part, the official system uses a mechanism called "Multiplier." Dividends, after deducting applicable taxes, are automatically reinvested, so your bStock quantity increases proportionally. This increase represents your dividend.
The entire process shows that bStocks are tokenized securities backed 1:1 by real stocks.
Users gain exposure to US stock price performance and corresponding economic rights while enjoying 24/7 trading, on-chain transfers, and DeFi composability brought by blockchain.
These characteristics represent the first step in bridging RWA with real-world finance. In the future, bStocks will be applied to more RWA-related assets, and Binance is the one taking this step now.
Chapter 1: Common Misconceptions and Pitfall Avoidance Guide
As bStocks gains popularity, many are starting to touch on-chain US stocks. However, no matter how innovative tokenized US stocks are, they are fundamentally financial assets. When traditional finance and Web3 collide, there are many information gaps in technology and rules. Do not use the old mindset of trading MEME coins or traditional US stocks to play with bStocks.
Here, I will list several cognitive misconceptions that are most likely to cause trouble:
1/5 ❌ Misconception 1: Buying bStocks means I directly own shares in that company. This is the most common mistake.
Pitfall Avoidance: bStocks are not equivalent to direct ownership of the underlying securities. Legally, bStocks are tokenized securities issued by BTech Holdings Limited (an SPV registered in the Abu Dhabi Global Market, ADGM).
You hold it to gain economic exposure (such as price fluctuations and dividends) to the stock or ETF, but you are not a direct shareholder of the listed company.
The most direct manifestation is: you have no direct voting rights, no direct dividend rights, and cannot participate in shareholder meetings.
If you need voting rights, you must follow the official process to exchange your bStocks 1:1 for real US underlying shares.
2/5 ❌ Misconception 2: Why is my balance in my on-chain wallet different from what is shown on Binance?
Some users have withdrawn bStocks to MetaMask or hardware wallets only to find the quantities don't match.
Pitfall Avoidance: This is actually triggered by the Multiplier mechanism.
To handle complex corporate actions like US stock splits and dividend reinvestment, bStocks introduced a multiplier mechanism.
In the smart contract, your original balance actually never changes; however, the effective balance you see on the interface is calculated as Original Balance × Multiplier.
Binance accounts and wallets supporting the BEP-677 standard (like Trust Wallet) natively integrate this multiplier and directly display your latest effective balance.
External wallets that haven't integrated BEP-677 might only read the original balance in the contract. So you might think tokens have decreased, but the asset value hasn't changed at all; it's just a display sync issue.
3/5 ❌ Misconception 3: When dividends are paid, the on-chain wallet will receive a separate transfer reward.
Many are used to Web3 staking where dividends or rewards are received as a separate token or stablecoin transfer. But for bStocks, dividend distribution is different.
Pitfall Avoidance: bStocks dividends are automatically compounded and not distributed separately.
When the underlying US stock pays a dividend, the issuer, after deducting 30% US withholding tax, automatically reinvests the funds to buy additional shares of that stock.
On-chain, this appears as your displayed token balance automatically increasing after the dividend payment.
Example: You originally held 10 tokens. After the ex-dividend and record dates, without any on-chain transfer, your interface balance automatically changes from 10 shares to 10.08 shares.
No manual operation is needed; dividends have automatically completed on-chain compounding for you.
4/5 ❌ Misconception 4: Since it's 24-hour trading, the price should always be exactly the same as the US stock.
bStocks supports 7×24 trading, while traditional US stocks have fixed opening and closing times. Do not assume that if the US stock closing price is $100, the on-chain price must also be $100.
Pitfall Avoidance: The trading price of bStocks in the secondary market may exist at a premium or discount relative to the underlying security.
During US market closures or periods of intense volatility, price differences will occur due to on-chain supply and demand, market maker liquidity, or even data delays.
Especially outside regular US trading hours, on-chain price fluctuations reflect current crypto market sentiment, so do not blindly treat the on-chain price as the absolute real-time US stock price.
5/5 ❌ Misconception 5: Since the tokens are on-chain, I can withdraw them anywhere to trade or pledge without oversight.
Web3 is generally permissionless. Some might think that since bStocks are in a non-custodial wallet, they can arbitrage, provide liquidity, or transfer them to friends anywhere.
Pitfall Avoidance: Do not cross the regulatory red lines of compliant tokenized securities.
bStocks are strictly regulated financial instruments. To prevent violations of applicable laws or sanction rules, the issuer retains high control:
Smart Contract Blacklist: If a wallet address is suspected of compliance violations or belongs to a restricted region (like a US person's account), the issuer has the right to blacklist that address, making it unable to trade or transfer.
DeFi Integration Restrictions: Any third-party DeFi protocol wishing to integrate bStocks must use the REST API provided by Binance to execute strict geographic blocking controls.
⚠️Therefore, be careful not to treat bStocks like ordinary MEME coins for random arbitrage. Once compliance red lines are touched, tokens on-chain risk being frozen.
bStocks indeed bridge the barrier between Web3 and real assets, but we must respect and understand the combination rules of traditional finance and on-chain mechanisms.
Understand the multiplier mechanism, recognize the difference between tokens and direct shareholding; only then can you master the bStocks sector in this new track.
Illustration of common bStocks misconceptions and pitfall avoidance
Chapter 2: Interpretation of the bStocks Compliance Framework
As a representative of the new generation of tokenized securities, bStocks adopts a completely different compliance foundation and legal architecture. Below, based on official disclosures, legal documents, and industry data, I will provide a comprehensive interpretation of the bStocks compliance framework, underlying asset support logic, and investor rights.
1/ bStocks Legal Positioning: Certificates, Not Direct Equity
According to the legal norms of the Abu Dhabi Global Market (ADGM), the underlying legal positioning of bStocks is very clear:
Financial Instrument Certificates:
bStocks tokenized securities are classified as certificates representing specific financial instruments under Article 92 of Schedule 1 of the Financial Services and Markets Regulations (FSMR).
No Direct Equity Relationship:
bStocks holders are not equivalent to direct shareholders of the underlying listed company, do not directly own shares of the underlying company, and have no affiliation or subsidiary relationship with the issuer of the underlying assets.
Rights Mapping:
It is an on-chain derivative certificate issued by the issuer, representing the economic benefits (such as price fluctuations, automatic dividend distributions, etc.) of the underlying US stocks/ETFs held in trust/custody.
2/ Core Compliance and Regulatory Framework
1. Regulatory Jurisdiction Approved by ADGM
The issuer of bStocks is BTECH Holdings Ltd (an SPV affiliate of the Binance Group).
The compliance basis for this product is based on a Prospectus approved by the ADGM Financial Services Regulatory Authority (FSRA) and is officially listed on the FSRA's official list.
Currently, 36 stocks are listed on Binance.
36 bStocks listed on Binance approved by FSRA
2. Sales Restrictions and Jurisdictional Compliance:
Not for US users: bStocks have not been registered under the US Securities Act of 1933 or any state securities laws. Therefore, sales or trading to US residents or US entities are strictly prohibited.
bStocks are only open to eligible compliant users in jurisdictions permitted by the ADGM prospectus and are limited to secondary market trading.
3/ Asset Support and Collateral: 1:1 Physical Backing
The security core of bStocks lies in its full physical backing mechanism: 1:1 Reserve Support: Every bStock token on-chain strictly corresponds to one real US stock/ETF share held in a Regulated Custodian account.
Autonomous Conversion Mechanism: Users can purchase underlying stocks through Binance-affiliated brokerage entities (such as Nest Trading) and convert them 1:1 into on-chain bStocks without conversion fees, and vice versa.
Asset Transparency: Users can view the reserve status of available collateral at any time through the bStocks Proof of Collateral page.
Proof of Collateral interface showing available collateral reserves
4/ Investor Protection and Insurance Claim Definitions
For on-chain asset holders, it is crucial to understand that there is no traditional securities insurance coverage:
No SIPC (Securities Investor Protection Corporation) Protection: SIPC only provides limited protection for customer assets held at SIPC-member brokerages (usually in response to brokerage bankruptcy). Since bStocks are tokenized financial certificates issued by BTECH Holdings Ltd and not direct securities assets held in US brokerage accounts, SIPC protection does not apply to any bStocks holders.
No FDIC (Federal Deposit Insurance Corporation) Protection: FDIC only applies to eligible bank deposits and does not protect any investment securities or tokens; thus, FDIC also does not apply to bStocks.
Rights Remedy Path: The rights of bStocks holders do not rely on insurance payouts under traditional US securities regulation but are entirely governed by the contractual rights specified in the bStocks product terms, prospectus documents, and risk disclosure agreements.
5/ Technical Foundation and DeFi
Breakthroughs in the technical path make bStocks more portable than traditional mapped tokens.
BNB Smart Chain Compatibility (BEP-677 Standard): bStocks are issued on the BNB chain using the BEP-20 token standard integrated with BEP-677.
This token standard, specifically designed for Real World Assets (RWA), allows users to withdraw tokens to non-custodial wallets for self-custody.
Due to its standard on-chain token attributes, bStocks can be introduced into supported decentralized finance (DeFi) applications for scenarios like staking and liquidity lending.
If we break down bStocks, it attempts to establish a framework that balances traditional securities regulation with on-chain trading efficiency.
For bStocks, the blockchain is just the trading carrier; what truly determines the product's boundaries remains the issuer, legal documents, asset support, and regulatory framework.
Analysis of the bStocks compliance framework
Chapter 3: The On-Chain Financial Network Formed by bStocks and the BNB Ecosystem
Compliance and asset support are just the foundation of bStocks.
When these certificates representing the value of top US tech giants reside on the BSC in the form of BEP-677, they can deeply integrate and fully activate the composability of the entire BNB ecosystem.
For RWA, asset on-chaining is just the first step; more importantly is what kind of ecosystem the asset can enter after being on-chain.
Previously, most stocks could only exist in traditional brokerage accounts, with uses mainly revolving around buying, holding, and selling.
After entering the BNB Chain, tokenized securities begin to possess the attributes of blockchain assets, allowing free flow between on-chain wallets and gradual connection with DeFi protocols.
This is one of the biggest differences between bStocks and traditional securities—it is not just an investment target, but also begins to become a foundational asset in the on-chain financial network.
1/ BEP-677 Standard Grants Self-Custody Attributes
bStocks break the limitations of traditional US stocks through seamless integration with BNB chain underlying technology.
The BEP-677 standard is not only perfectly compatible with major decentralized wallets on the BNB chain but also grants investors the power to withdraw bStocks to non-custodial wallets.
This allows users to enjoy the economic benefits of traditional US stocks while truly owning the self-custody of assets, providing technical possibilities for cross-chain assets and on-chain interaction.
Furthermore, BNB Chain already possesses a mature ecosystem of wallets, DEXs, lending protocols, and infrastructure.
As bStocks connect to the BNB Chain, official statements indicate plans to gradually explore integration with ecosystem protocols including PancakeSwap, Venus, Lista DAO, Aster, etc., providing more on-chain application scenarios for tokenized securities.
With such support, bStocks inject faster flow into Web3 funds.
Official setting diagram of the BEP-677 protocol
2/ Interest and Lending on BSC
For the entire BNB ecosystem, the significance of bStocks is not just adding a new class of assets.
As everyone knows, the DeFi ecosystem has always suffered from a lack of collateral assets supported by real economic cash flow and high consensus. The arrival of bStocks completes this puzzle.
In the past, circulation on the BNB Chain was mainly native crypto assets and stablecoins; as tokenized stocks, ETFs, and other real-world assets continue to enter the chain, BNB Chain is gradually becoming the infrastructure connecting traditional finance and DeFi.
Users can stake growth tech assets like NVIDIA or Tesla while borrowing stablecoins like USDT or lisUSD to participate in other on-chain activities.
This method releases idle capital previously held at traditional brokerages, achieving a double overlay of traditional stock growth dividends and Web3 capital efficiency.
From this perspective, bStocks is more like an important component of BNB Chain's expansion into the RWA ecosystem.
It not only injects TradFi industrial dividends and cash flow into the BNB ecosystem but also allows traditional securities to connect with wallets, DeFi protocols, and open financial networks for the first time as on-chain assets, extending the value of RWA from asset tokenization to asset composability.
In the future, when the value of top US tech companies can flow through the BEP-677 technical veins of the BNB chain to every decentralized application, what is established is no longer a simple trading channel, but a new type of global financial hub integrating traditional compliance guarantees with Web3's ultimate liquidity.
And this, I believe, is the future direction of BSC.
Illustration of the on-chain financial network built by bStocks and the BNB ecosystem
Chapter 4: On-Chain Gameplay of bStocks
After clarifying the compliance framework and understanding how the BNB chain injects life into it, as an ordinary investor, how do you actually generate income from bStocks on-chain? What are the specific combination gameplay paths?
**This chapter will break down several mainstream on-chain practical gameplays for you:
1/ As an On-Chain Trading Asset, Direct Trading**
The most basic gameplay is still trading.
bStocks can be traded 24/7 on-chain, no longer restricted by US market opening and closing times, and on-chain transaction confirmation speeds are much faster than traditional securities market settlement processes.
Currently, you can directly filter for bStocks in the Binance trading section.
Then you can use supported trading pairs like USDT to purchase stocks, and the purchased tokenized stocks can also be withdrawn to any decentralized wallet supporting the BNB chain.
⚠️ Note that on-chain trading hours do not align with US stock trading hours, and prices may still be affected by market liquidity, supply and demand, and other factors.
Screenshot of bStocks location on Binance
2/ Interest-Bearing Gameplay—Double Dipping as Lending Collateral
When stocks are on-chain, the strategy begins to change.
Currently, the official team has promoted the integration of bStocks into lending protocols like Venus and Lista DAO, supporting eligible bStocks as collateral.
This is suitable for investors who are long-term bullish on a certain tech stock and don't want to sell easily, but also need mobile combat funds.
Practical Steps:
- Choose a protocol: such as Venus or Lista DAO.
- Provide collateral: Connect your wallet and deposit your bStocks into the protocol as collateral.
- You can borrow a certain percentage of stablecoins against these bStocks as a guarantee.
- Use the borrowed stablecoins to buy other favored assets or seek higher yield opportunities on-chain.
⚠️ Risk Warning:
Although US stocks themselves are not as volatile as cryptocurrencies, liquidation risks still exist during market crashes.
Please never borrow up to the maximum limit (LTV).
It is recommended to keep the borrowing at around 50% of the limit to leave a sufficient safety cushion, preventing your bStocks collateral from being forcibly liquidated by the system during a sharp US market drop.
Screenshot of the bStocks lending section in Lista DAO
3/ Participate in On-Chain Liquidity to Earn Both US Stock Price and On-Chain Trading Gains
Besides lending, liquidity is also an important part of on-chain finance.
You can also provide liquidity for other users trading bStocks.
Practical Steps:
- Choose a DEX platform: Open a mainstream decentralized exchange on the BNB chain (such as PancakeSwap or Aster).
- Pair deposit: Prepare equal values of bStocks (such as $NVDAB) and a stablecoin (such as USDT).
- Provide Liquidity (LP): Deposit both into the corresponding liquidity pool at a 1:1 value ratio.
- Then wait for the income to arrive.
Illustration: How to add liquidity for bStocks in PancakeSwap
Of course, the appreciation of the underlying stock and dividend reinvestment benefits still belong to you.
You can not only earn the APY from PancakeSwap but also the extra subsidized annual rewards provided by the platform.
Furthermore, whenever others buy or sell NVIDIA in the decentralized exchange, you can earn a proportional share of the on-chain transaction fees generated by these trades.
Details of annual yield for the bStocks sector on PancakeSwap
The on-chain combination gameplay of bStocks essentially maximizes the extraction of residual value from funds through smart contracts without diluting your US stock holdings.
For conservative investors, completing self-custody withdrawal and keeping them in a wallet to enjoy automatic dividend reinvestment is safe and worry-free enough;
For players pursuing ultimate capital efficiency, yield can be amplified through Venus staking/lending or PancakeSwap liquidity market making.
But regardless of the gameplay chosen, remember to control leverage ratios, pay attention to on-chain security at all times, and keep enough BNB as GAS—this is the golden rule for generating compound interest.
Chapter 5: Practical Experience with bStocks Leverage and Collateral
After mastering the regular DeFi deposit and lending gameplay in Chapter 4, is it possible to use the on-chain attributes of bStocks for multi-fold longing without adding external principal?
The answer is yes. This is exactly the leverage circulation mechanism built by on-chain lending giants like Lista DAO or Venus Protocol together with the efficient BNB chain network.
In this chapter, we will use real on-chain interaction logic and practical processes to take you through a deep experience of how to squeeze every bit of efficiency out of your funds using bStocks.
Operation Process (using $100 as an example):
- First, buy $100 worth of $NVDAB, which is NVIDIA bStock.
- Stake $NVDAB as collateral in a supported lending protocol like Lista DAO.
- Here, the collateral ratio for NVDAB is 74%, so I can borrow $74 worth of stablecoins.
Screenshot of Lista DAO lending operation tutorial
At this point, my borrowing amount is 74.
Screenshot of Lista DAO lending page
- Then use these $74 to buy NVDAB from the market again and deposit it into Lista DAO.
Screenshot of recursive lending principle—depositing again
Now your total collateralized assets become $175.
In this way, you can use $100 to leverage a $175 position, equivalent to opening a 1.75x leverage on the original principal.
Of course, you can also use the borrowed funds to configure on-chain liquidity for other assets. This depends on your on-chain capital allocation habits and your control over fund risk and return.
Screenshot of recursive lending principle—total collateral after one cycle
But pay attention to one major issue here:
When lending, do not pull the collateral ratio to the maximum. In my example above, $100 of collateral can borrow a maximum of $74 in stablecoins.
But definitely do not borrow the full $74, because it is very easy for market fluctuations to cause your assets to be liquidated. You can simply understand this collateral ratio as the margin in a contract; the higher it is, the easier it is to be liquidated (blown out) by market fluctuations.
So, assuming a collateral ratio of 75%, your maximum borrowing amount is relatively safe at around 50%.
If you are a novice and don't know what collateral ratio to set to keep your position safest, the following formula can serve as a reference:
Safe borrowing amount calculation—Anti-crash formula chart
Chapter 6: Advanced bStocks Gameplay—Cross-Asset Strategies
If previous gameplays revolved around one type of asset, another change brought by bStocks is allowing stocks and crypto assets to be synergistically configured in the same on-chain investment portfolio for the first time—cross-asset arbitrage and hedging strategies.
In this chapter, we will deeply explore how to use bStocks to build advanced cross-asset combination gameplays between the high volatility of cryptocurrency and the relative stability of traditional US stocks.
1/ Strategy 1: Cross-Market Arbitrage Due to differences in trading mechanisms, participant groups, and time dimensions between the crypto market and the US stock market, there may be brief price deviations between tokenized certificates (bStocks) and US stock spot prices for the same company.
Principle: During non-US trading hours, if the crypto market surges due to some macro news, on-chain bStocks prices might be pushed up early by traders (premium); whereas after the US market opens, the spot price might not have caught up. The reverse is also true.
Operation Method:
- AI is very convenient now; you can use an AI agent to deploy an on-chain monitoring system to monitor the price gap between bStocks (like $NVDA) and US stock spot.
- When a significant positive premium appears on-chain, sell bStocks on-chain, and at the same time, buy an equivalent amount of real NVIDIA stock at a US brokerage.
- When the US market opens and the price gap narrows, close positions on both ends simultaneously to lock in the fluctuation difference. Actually, this is a strategy that uses the information and sentiment gap between crypto US stocks and real US stocks for low-risk buying and selling on both ends.
There is a certain price difference between US stock spot and bStocks at the same moment
2/ Strategy 2: Delta Neutral Hedging
If you want to earn the DeFi staking interest or DEX liquidity fees mentioned in Chapters 4 and 5 without bearing the risk of US stock price fluctuations, you can use Delta neutral hedging.
Principle:
You are interested in the high on-chain market-making returns of a certain bStock (like the $NVDA - USDT pool) but are afraid of a sudden crash in NVIDIA stock damaging your principal.
In this case, you only need to establish an equivalent reverse order elsewhere to hedge the price fluctuations.
Operation Method:
- Deposit equal values of bStocks (like $NVDA) and USDT in PancakeSwap to provide liquidity, earning market-making fees and dividend reinvestment.
- In a traditional US brokerage account or a platform supporting US stock derivatives, open a short position of equal value for NVIDIA spot.
- Then, whether NVIDIA's stock price surges or crashes, your gains and losses from longing on-chain and shorting off-chain will cancel each other out. You can then sit back and collect on-chain DEX transaction fees and dividends.
Staking yield interface related to bStocks in PancakeSwap
3/ Strategy 3: Double Dipping with Cross-Asset Collateral (But note the liquidation time lag)
This is also a method favored by institutions and whales: using stable US stock assets to leverage high-elasticity profits in the crypto industry.
Principle:
Buying on-chain stocks of tech giants like Microsoft belongs to hard currency with high consensus and relatively low price fluctuations. We can use them as on-chain cornerstones to seek high-yield crypto-native opportunities.
Operation Method:
- Deposit low-volatility index-type bStocks into Venus or Lista DAO.
- Since it is extremely difficult for the underlying US stock market to crash more than 30% in a single day, borrow appropriate stablecoins based on the collateral ratio.
- The borrowed stablecoins can be invested in crypto market events like participating in new token mining (Launchpool), buying mainstream blue-chip tokens, etc., to seek higher profits.
- Then use the Alpha gains earned in the crypto circle to repay the US stock lending interest.
⚠️ However, this method still requires attention to one point: Although cross-asset strategies sound perfect, in actual execution, watch out for—liquidation time lag.
Traditional hedging and arbitrage require real-time response on both ends.
But when the US market is closed on weekends while the crypto market is not, or during intense pre-market/after-hours US stock fluctuations, your short order at the US brokerage might be unable to close or add margin due to system closure, while your on-chain bStocks are being liquidated in real-time 24/7.
Therefore, this time lag where one end can move and the other is stuck can easily lead to a break in the hedging chain under extreme market conditions.
So, when deploying cross-asset strategies, keep double reserve funds in both accounts and don't pull the leverage too high.
Illustration of advanced bStocks gameplay
Chapter 7: Thinking for Building an Investment Portfolio with bStocks
This is the final chapter. Once we have mastered basic lending, leverage, and single-point cross-asset strategies, what we ultimately need is how to truly integrate bStocks into our daily capital allocation.
Here are some of my insights on capital allocation and some tips summarized from my personal experience in the crypto and US stock markets to share with everyone. In traditional Web3 investment, most people's assets and liabilities are unstable.
In a bull market, you might buy many altcoins that surge many times overnight, causing your total assets to expand significantly.
But as soon as a black swan event or a bear market turn occurs, they will quickly retract, especially for high-leverage and contract users whose funds might go to zero.
In the traditional US stock market, although asset returns are generally more stable and overall fund fluctuations are not as large as in the crypto circle, capital flow efficiency is extremely low.
After introducing bStocks, my thinking is: through the asset allocation form of underlying assets being US stocks and top-layer returns being Web3, build a new modern on-chain investment portfolio method.
1/ Hourglass Asset Allocation Model
This asset allocation method is the one I recommend most; it can precisely push funds to both ends.
Stable bottom assets serve as the foundation with extremely aggressive on-chain high-yield tools, while cutting out middle-risk assets that are neither here nor there, with high volatility and mediocre returns.
Main asset configuration is as follows:
Bottom (Hourglass Base): Serving as the foundation for the entire asset pool, accounting for approximately 60% - 70% of total funds.
Mainly configure bStocks of tech giants with long-term consensus (such as NVDAB, TSLAB, MSFTB) or S&P 500 index-type bStocks. These assets themselves have strong intrinsic value and dividend capabilities.
Top (Hourglass Top): On-chain high-yield tools (accounting for 30% - 40% of total funds).
This part of the funds is not extra money you deposited, but stablecoins borrowed by staking the underlying bStocks on-chain (using the safe discount rate calculated previously). These stablecoins will be 100% invested in high-yield Web3 projects.
2/ Portfolio Practice: Two Configuration Templates for Typical Capital Sizes
Depending on different capital sizes and risk preferences, you can directly refer to the following two configuration schemes:
Scheme 1: Stable Cash Flow Perpetual Motion Machine Combination—Suitable for Whales Pursuing Long-Term Compounding
Asset Allocation:
50% S&P 500 / Microsoft and other blue-chip index bStocks.
50% NVIDIA (NVDAB) / Apple and other tech growth bStocks.
Configuration Method:
- Deposit all the above bStocks into Venus or Lista DAO.
- Borrow stablecoins at a conservative collateral ratio of 35% - 40%. If you don't understand why the ratio is this much, please look back at Chapter 5; this debt ratio is very safe and can withstand an extreme retraction of over 40% in the underlying US stocks.
- Deposit the borrowed stablecoins into stablecoin pairs (like USDT-lisUSD) yield pools in PancakeSwap, which can earn a stable annual return of about 25%. Breaking down the income sources: US stock price appreciation + stock dividends + market-making interest from borrowed funds.
Scheme 2: Aggressive Combination—Suitable for Active Traders Seeking Excess Returns in a Bull Market
Asset Allocation:
70% Core tech bStocks (such as NVDAB, TSLAB, ARMB).
30% On-chain mainstream crypto assets (BTC, BNB).
Configuration Method:
- Similarly, stake 70% of bStocks in a lending protocol.
- Borrow stablecoins using a stable 50% collateral ratio.
- When the crypto market picks up, use the borrowed stablecoins to directly participate in Binance's Launchpool or on-chain IDOs for high-quality projects, or buy BTC or BNB on the spot market during dips. Breaking down the income sources: US stock price appreciation + stock dividends + high Alpha returns from crypto circle IDOs. Even if altcoins in the crypto circle retract sharply in the short term, as long as your large US stock base doesn't collapse, your position will not face overall liquidation risk.
3/ Dynamic Balancing—Adjusting Positions Based on Market Conditions
The states of the US stock market and the crypto circle are certainly not always consistent, and a good investment portfolio is not static.
Asset Allocation:
When US stocks soar and the crypto circle is quiet: Your bStocks value surges, the health of your lending account is significantly boosted, and your borrowable limit increases.
At this time, you can borrow more stablecoins to buy the dip on on-chain crypto blue-chip assets (like BTC) that have become cost-effective.
When the crypto circle is in a bull market and US stocks are stagnant: You have earned a large amount of stablecoin profit from crypto IDOs or spot trading.
At this time, do not leave the profits in high-risk tokens; instead, you should settle the profits and exchange them 1:1 for bStocks for free to supplement your underlying stock positions, locking in profits and improving the safety of your entire account position.
4/ Risk Warning for This Chapter
Whether in US stocks or the crypto circle, do not open full-leverage contracts when creating extra returns during on-chain configuration.
If you are used to opening high-leverage contracts, it is strongly recommended to withdraw your long-term investment bStocks portfolio to a self-custody wallet and follow a pure on-chain DeFi route, separate from your platform account.
This way, you can more clearly see the shortcomings of your asset allocation.
Illustration of thinking for building an investment portfolio with bStocks
The seven chapters above provide a detailed introduction from the definition and compliance framework of bStocks to the final gameplay details.
If you are a novice who has read this far, I believe you already understand about 60-70% of bStocks. The asset allocation and gameplay mentioned in the article can be adjusted according to your own financial situation and behavioral habits.
Here, I have only provided a general direction; specific configurations need to be set by yourself for your own asset management and on-chain bStocks gameplay. Welcome to experience it personally on Binance.
Finally, I hope this article can help everyone better understand bStocks, and if you have a better investment portfolio, you are welcome to discuss it in the comments section.
——This entire piece was written by Mr. Miss. Please credit the source when reposting or copying content. Thank you, everyone. @heyibinance @cz_binance @yingbinance @sisibinance @binancezh
