CoinVoice has learned that, according to The Block, Binance has announced the launch of the yield-bearing margin asset BFUSD, which will officially go live on November 27 at 10:00 (UTC+8). Users can earn passive income by holding or trading contracts, and Binance promises that its annual percentage yield (APY) will never be lower than zero.
According to a Binance spokesperson, BFUSD holders will receive a daily calculated base annual yield, allowing them to benefit from returns even without participating in contract trading. Eligible USDⓈ-M contract trading users can enjoy a higher enhanced annual yield on the same day. Historical data shows that between November 20 and 25, the BFUSD base annual yield fluctuated between 12% and 35%, while the enhanced yield reached 15% to 47%.
BFUSD is not a stablecoin and cannot be withdrawn from the Binance contract account or traded on the open market; it can only be used as margin for Binance contract trading and can be exchanged 1:1 with USDT. This product generates returns through a delta hedging strategy between the spot and contract markets and Ethereum staking. It is currently only available to eligible Binance contract users in supported regions, excluding restricted areas such as the United States. [Original link]