Binance Futures is pleased to introduce BFUSD, a new innovative product that provides active Binance Futures traders with the opportunity to earn returns on eligible balances in their futures accounts. BFUSD can also be used as leveraged trading balances in multi-asset mode of futures accounts, while continuing to earn rewards.
How does BFUSD work?
BFUSD is an innovative new product from Binance that rewards Binance Futures users for eligible BFUSD balances in their futures accounts. BFUSD can also be used as a margin trading balance in the multi-asset mode of futures accounts, while still earning rewards. BFUSD is redeemable for USD stablecoins, making it a stable option in the cryptocurrency market.
Binance Futures users who hold BFUSD in their futures accounts are eligible to receive daily USD stablecoin rewards based on the daily base rate. Futures users can qualify for a higher boosted rate rewards every day they actively trade USDⓈ-M futures contracts on their futures accounts.
BFUSD reward amounts are funded by Binance Income, which operates investment and hedging strategies, generating income from storage and financing fees. To ensure the stability and security of BFUSD holders, a solid BFUSD reserve fund has been implemented (starting at $1 million USD at launch).
Binance's ability to generate income through its hedging and investment strategies is a key factor in determining the base rate and boost rate, and will depend, among other things, on prevailing market conditions, including, for example, the funding rates set on the Binance platform.
