On November 26, according to the official announcement, Binance contract trading platform launched BFUSD.
BFUSD is a reward-based margin asset created by Binance specifically for futures users. Here is a detailed introduction to it:
Basic information: BFUSD is not a stablecoin in the traditional sense, but a special asset type launched by Binance to enrich its futures trading ecosystem and encourage users to participate in futures trading.
Background: With the development of the cryptocurrency market, futures trading, as an important financial derivatives trading method, has attracted more and more investors' attention. In order to enhance its competitiveness in the futures market, attract more users to participate in futures trading, and provide users with more trading options and profit opportunities, Binance launched BFUSD.
How it works:
Margin usage: Users can use BFUSD as margin for multi-asset futures accounts, which provides traders with a new way to use funds and increases the flexibility and efficiency of funds. When trading futures, choosing BFUSD as margin can meet the margin requirements of the transaction while releasing the liquidity of other funds for other investments or trading opportunities.
Reward mechanism: Users who hold BFUSD can receive daily USDT rewards, which provides an additional income channel for users. Moreover, if users use BFUSD as margin to trade USDⓈ-M futures, they can further increase the reward income. This reward mechanism is designed to encourage users to actively hold and use BFUSD, and increase users' participation and activity in futures trading.
Advantages and features:
Profit opportunities: Provide users with additional bonus income in addition to the income from futures trading itself. By holding BFUSD and using it for futures trading, users can obtain more economic returns and increase the overall investment income potential.
Fund efficiency: As a margin asset, BFUSD improves the efficiency of user funds, enables funds to be flexibly allocated in different trading scenarios and asset types, optimizes the investment portfolio, and enhances the comprehensive utilization value of funds.
Platform support: Launched and supported by Binance, a world-renowned cryptocurrency trading platform, Binance has strong technical strength, rich market experience and a broad user base. This provides strong support for the stable operation, market circulation and value protection of BFUSD, and users can use and hold BFUSD with confidence.
Risks and precautions:
Market risk: The cryptocurrency market itself is highly volatile and uncertain, and the value of BFUSD will also fluctuate due to market factors. As an asset related to futures trading, its value will also be affected by factors such as futures market conditions and trading activity. Users need to fully understand market risks and make reasonable allocations and transactions based on their own risk tolerance and investment goals.
Platform risks: Although Binance is a well-known cryptocurrency trading platform, the cryptocurrency industry still faces many challenges and risks in terms of regulation, technology, and security. Users need to pay attention to the platform's operating conditions, policy changes, and security measures to reduce the risk of asset loss due to platform problems.