PANews, November 19 - According to The Block, Binance announced BFUSD on Monday, describing it as a "yield-bearing margin asset for futures trading," offering an annual percentage yield (APY) of 19.55%, and can be used as collateral. Binance clarified that although the bottom of the webpage mentions that the yield of BFUSD is higher than many stablecoins, BFUSD is not a stablecoin and has not yet been officially launched. This asset allows users to use it as collateral without staking or locking funds, and earns yields through daily airdrops, with the amount held by users limited according to VIP levels. Binance plans to further explain how the APY of BFUSD is determined, and the launch of BFUSD has drawn comparisons to TerraLUNA, although Binance suspended support for its stablecoin BUSD in February 2024 due to regulatory pressure, advising users to switch to First Digital USD (FDUSD).
