Binance is set to introduce BFUSD on November 27 at 2:00 UTC, a groundbreaking margin asset designed for passive earnings via futures trading.
Key Features of BFUSD
1️⃣ Dual Purpose: BFUSD serves as both a margin instrument for USDⓆ-Margined Futures trading and a passive reward asset with a guaranteed APY that never drops below zero.
2️⃣ Stable Rewards: Whether or not you trade futures, BFUSD holders will enjoy a Base APY daily. Qualified futures traders earn enhanced APY based on trading activity.
3️⃣ Protection Against Losses: Unlike other assets, Binance’s Reserve Fund ensures users are safeguarded against negative returns.
How BFUSD Generates Rewards
Delta Hedging Strategy: Utilize the spot and futures markets to earn funding fees while hedging against market volatility.
Guaranteed Rewards: Even during negative funding periods, Binance's Reserve Fund covers the loss to maintain a zero or positive APY.
Historical Performance
From Nov 20-25, the Base APY ranged between 12% and 35%, with enhanced APY exceeding 47% for futures-qualified traders.
Historical ETHUSDT financing rates show consistent positive returns, supporting BFUSD’s sustainable reward model.
What You Need to Know
Not a Stablecoin: BFUSD cannot be traded or withdrawn; it’s exclusively for Binance futures margin trading. However, it can be redeemed for USDT.
Low Fees: The purchase and redemption fee is 0.1%, waived during the launch campaign (Nov 27 - Dec 26).
Daily USDT Rewards: Most APY payouts are distributed as daily USDT rewards, with a portion allocated to the Reserve Fund.
Campaign Highlights
🎉 Earn Bonus Rewards: During the launch, Binance is offering 100,000 USDT in bonus APY and USDT vouchers.
🎯 Exclusive Access: BFUSD will be available to qualified futures users only, with VIP users enjoying higher allocations.
Why It Matters
BFUSD offers a low-risk opportunity for passive income while serving as a futures margin asset, making it a game-changer for traders seeking stable, consistent returns.
Stay tuned for its launch tomorrow on Binance!
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