Binance Launches BFUSD, a Reward-Bearing Margin Asset for Users
Popular crypto exchange Binance has announced a new asset called BFUSD, which will be available starting November 26 (Asian time). This "reward-bearing margin asset" is designed for users to earn passive income through holding or trading futures.
During a promotional period from November 27 to December 26, users can purchase BFUSD without incurring fees and have the opportunity to earn 100,000 USDT in bonus APY and USDT vouchers.
More Details on Binance BFUSD
BFUSD targets Binance Futures users and offers passive rewards even for non-traders. It provides a Base Annual Percentage Yield (APY) that accrues daily, with potential for a "Boosted APY" when engaging in USDⓈ-Margined Futures trading using stablecoins like USDT or USDC.
A Binance spokesperson assured that BFUSD holders will receive consistent APY, with rewards never falling below zero. This assurance is supported by a Reserve Fund seeded with 1 million USDT to mitigate negative funding rates during bearish markets.
How Rewards Are Generated
Rewards for BFUSD will be generated using two methods: Delta Hedging, which balances spot and futures market positions to minimize risks, and staking Ether to maximize returns. Binance is confident in maintaining a steady flow of income primarily distributed in USDT.
It is important to note that a standard 0.1% fee will apply to purchases and redemptions after the promotional period ends. BFUSD is not a stablecoin and cannot be withdrawn or traded in open markets; it is exclusively redeemable for USDT on Binance.
Access is limited to eligible Binance Futures users in supported regions, excluding the US.