●BFUSD is trading below peg, creating a redemption arbitrage opportunity.
●Traders estimate a 6% return with a three-day redemption period.
●The strategy is attracting capital seeking yield in a low-rate environment.
Traders have identified a potential arbitrage opportunity involving BFUSD, which is reportedly trading below its peg. Market participants estimate that executing a redemption arbitrage strategy could generate returns of approximately 6%, though the process involves a lock-up period estimated at three days.
This opportunity is gaining attention as traders actively seek yield-generating venues for idle stablecoin capital in an environment where attractive options are becoming scarce.