Binance launches new cryptocurrency and says that returns “will never be less than zero”

The new token can be held or traded on the broker’s futures platform

Binance announced this Tuesday (26) the launch of the BFUSD token, which will be traded on margin on the broker’s futures platform starting at 11 am on Wednesday (27). Interestingly, the broker promises that the asset’s annual percentage yield (APY) “will never fall below zero”.

Although BFUSD resembles a stablecoin due to its ticker format — stablecoins usually end with the acronym USD, in reference to the dollar — it is a common cryptocurrency that will offer passive income to users who hold or trade it on Binance’s futures platform.

USD-margined futures are futures contracts on Binance that use stablecoins such as USDC or USDT as collateral and settlement currency, offering a stable trading experience by mitigating the volatility associated with using cryptocurrencies as collateral.

According to a Binance spokesperson explaining to The Block, recent historical data has shown that the base APY for BFUSD ranged from around 12% to over 35% during the period from November 20 to 25. Additionally, he noted, the boosted APY would have ranged from around 15% to over 47% during that period.