Binance plans to launch BFUSD on November 27 at 2:00 UTC, which will be a revolutionary margin asset designed for passive income through futures trading.

Key features of BFUSD

1️⃣ Dual purpose: BFUSD serves as both a margin tool for futures trading with USDⓆ margin and an asset for passive rewards with a guaranteed APY that never falls below zero.

2️⃣ Stable rewards: Whether you trade futures or not, holders of BFUSD will receive the base APY daily. Qualified futures traders earn enhanced APY based on trading activity.

3️⃣ Loss protection: Unlike other assets, the Binance reserve fund guarantees protection for users against negative returns.

How BFUSD generates rewards

Delta hedging strategy: Use spot and futures markets to obtain funding while hedging market volatility.

Guaranteed rewards: Even during periods of negative funding, the Binance reserve fund covers losses to maintain a zero or positive APY.

Historical performance

From November 20 to 25, the base APY ranged from 12% to 35%, with the enhanced APY exceeding 47% for qualified futures traders.

Historical funding rates for ETHUSDT show stable positive returns, supporting a sustainable reward model for BFUSD.

What you need to know

Not a stablecoin: BFUSD cannot be sold or withdrawn; it is intended solely for margin trading of futures on Binance. However, it can be exchanged for USDT.

Low fees: The commission for buying and exchanging is 0.1%, waived during the launch campaign (November 27 - December 26).

Daily rewards in USDT: Most APY payouts are distributed as daily rewards in USDT, part of which goes to the reserve fund.

Campaign highlights

🎉 Earn bonus rewards: During the launch, Binance offers 100,000 USDT in bonus APY and USDT vouchers.

🎯 Exclusive access: BFUSD will only be available to qualified futures users, with VIP users receiving larger allocations.

Why this matters

BFUSD offers a low-risk opportunity for passive income while also serving as a margin asset for futures, making it revolutionary for traders seeking stable and consistent returns.

Stay tuned for the launch tomorrow on Binance!

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