Binance Announces Official Launch of BFUSD

Binance Introduces High-Yield Margin Asset BFUSD

Binance Futures revealed in an official announcement on November 26 the launch of the BFUSD margin asset. Users can start purchasing the margin asset at 2 a.m. UTC on November 27.

The cryptocurrency exchange has set a threshold share for the margin asset . which is based on a user’s VIP level. To participate, transfer USDT to a .UM wallet. Holders of UM futures contracts that they traded just one day ago will receive an enhanced APY. Interest payments will be distributed daily to users’ UM Futures accounts.

The supply is 120 million, with a guaranteed rate of 101.32%. It will offer a base APY of 29.18% . with an enhanced APY of 38.98%, according to Binance data

Benefits and Risks of Holding the Asset

BFUSD can be exchanged for a USD stablecoin. This means that users can exchange it for USD. Making it an ideal choice for those looking for a stable solution in the cryptocurrency market.

Moreover, the trading platform has also set up a BFUSD reserve fund specifically to cover potential costs from financing dees. And support the maintenance of the collateral pool and hedging portfolio.

One of the main benefits of using it as a margin for trading USD-M contracts in multi-asset mode. There are two reward rates available every day. The base rate and the enhanced rate.