Binance Introduced High-Yield BFUSD Margin Asset, Not Stablecoin
Binance has introduced a new futures trading asset called BFUSD intended for high-yield earnings and as collateral for trading and borrowing
Binance has introduced the BFUSD margin asset intended for high-yield earnings and to act as collateral for trading and borrowing. This asset comes with an APY of 19.55%, making it a fantastic alternative to traditional stablecoins. A user just needs to keep the BFUSD in the UM wallets to get daily rewards without even staging or locking funds. BFUSD keeps stability with a 105.54% collateralization ratio and a reserve fund holding 1.1 million USDT as of November 17, 2024.
Binance Launches BFUSD: High Yield, Collateral Options, and Daily Rewards
Binance has just introduced a new futures asset, BFUSD, claiming an annual percentage yield of about 19.55% in return. In total, it supplies 20 million BFUSD to make users earn seamlessly without going for staking or locking up their funds.
Binance Customer Support clarified to the crypto community that it is not a stablecoin but a reward-bearing margin asset for futures trading.
Users can hold BFUSD in their UM wallet and obtain airdropped rewards daily. Also, Binance calculates interest based on the lowest hourly BFUSD balance in the user’s account, captured through hourly snapshots. Nevertheless, it credits rewards daily to the UM Futures account, viewable under Reward History.
The new Binance BFUSD has some offerings for its users. For one, it gives them hassle-free earnings; just having the BFUSD in the accounts gives one rewards daily. With a 19.55% APY, it outpaces the returns of many stablecoins and presents a great deal for investors. Furthermore, BFUSD can be used as collateral in Multi-Asset Mode with a collateral ratio of 100%, which increases the trading capacity of users.
