Happy just said a while ago that "the liquidity re-release of mortgage assets is becoming more and more popular", and even Binance is doing this!
In short, after you exchange USDT for BFUSD, you can not only get an annual interest of about 10%, but also continue to play contracts. Everyone must have USDT occupied in the contract margin and unable to obtain interest. BFUSD is used to solve this problem.
Operation: Users only need to use USDT to buy BFUSD (if you trade U-based contracts once a day, there will be additional income) and put it in the contract account, and you can receive USDT income every day after the next day.
The birth of this model is related to the compound interest-bearing assets and re-pledge on the chain. The basic logic is the same. The occupied assets are repackaged into new tokens, allowing them to participate in some other functions and then release the liquidity of the occupied tokens. This has a strong increase in the liquidity of funds. In a big way, it accelerates the progress of the bull market!
According to the official explanation, the income of BFUSD comes from Binance's hedging and investment strategies, such as using USDT to purchase BFUSD to perform capital cost arbitrage.
This is the reproduction of Web3's innovation in Web2, and it is also the embodiment of CeDeFi. In the future, there will be more and more similar products, and centralization and decentralization will learn from and combine with each other!