According to the official blog, Binance has announced the launch of a reward margin asset BFUSD created specifically for futures users. This asset aims to support users' futures trading while providing additional rewards. BFUSD is only available on Binance, and holding BFUSD allows users to earn 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 a dollar stablecoin. To protect users from negative funding rates, Binance has established a reserve fund with an initial capital of 1 million USDT. This fund acts as a buffer to cope with adverse market conditions, such as negative funding rates. The reserve fund continually replenishes a portion of the daily rewards for BFUSD, growing in proportion to BFUSD's investments and hedging strategies, and ensuring protection from 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.

#ETH #USDT