PANews, November 26 reports, according to the official blog, Binance announced the launch of a reward margin asset BFUSD specifically created for futures users. This asset aims to support users' futures trading while providing additional rewards. BFUSD is only available on Binance, holding BFUSD allows users to receive daily USDT rewards and increase their rewards by trading USDⓈ-M futures with BFUSD as margin—all funds are provided by Binance's delta hedging and ETH staking strategies. BFUSD can be exchanged for US dollar stablecoins.
To protect users from the impact of negative funding rates, Binance has established a reserve fund with an initial capital of 1 million USDT. This fund serves as a buffer to cope with adverse market conditions, such as negative funding rates. The reserve fund continually supplements a portion of the daily rewards for BFUSD, growing proportionally with BFUSD's investments and hedging strategies, ensuring protection against negative funding rates. Currently, USDT is the only supported currency for purchasing BFUSD. Additionally, to use BFUSD as margin, users need to enable multi-asset mode.