Binance, the world's largest cryptocurrency exchange, recently introduced BFUSD, a yielding stablecoin that can also be used as collateral and offers 19.55% APY.
According to the statement made by the Binance official customer support account, BFUSD will not be a stablecoin. Instead, it will be a margin asset that carries rewards for futures trading.
Now, Binance has officially introduced BFUSD, a rewarding margin asset that allows users to earn passive rewards by holding or trading futures.
Binance announced that BFUSD purchasing will open on November 27 at 02:00 UTC.
Speaking to The Block, a Binance spokesperson stated that the APY on BFUSD will never fall below zero, saying:
“BFUSD is designed as a margin asset for futures trading while also providing passive rewards.
BFUSD holders will enjoy an accrued Base APY (annual percentage yield) on a daily basis even if they do not trade futures, and those with qualifying USD-Margined Futures trading activity will instead enjoy a higher Enhanced APY for that day.
Binance assures its users that BFUSD reward rate or APY will never drop below zero.”
The Binance spokesperson also said that only eligible Binance Futures users can purchase BFUSD, adding that the futures trading platform is restricted in certain regions, including the United States.
Finally, the Binance spokesperson reminded that BFUSD is not a stablecoin, pointing out that BFYSD cannot be withdrawn from a Binance futures account or traded on the open market. “Because BFUSD can only be used as margin for futures trading on Binance and can be redeemed with Binance for USDT stablecoin,” he said.
Introducing BFUSD!
Our new reward-bearing asset built for Futures users is available now.
BFUSD purchase will open on Nov 27, 2am UTC.
Try now 👉 https://t.co/W0WvVrdYpz pic.twitter.com/0ZrEsM9wGE
— Binance (@binance) November 26, 2024
*This is not investment advice.
