In recent days, many have introduced $BFUSD, a new wealth management product launched by Binance, which is defined by Binance as: 'a yield-bearing margin asset for contract traders.'
However, many group friends expressed that they feel 'impressed but confused'; it feels powerful but they don't understand what $BFUSD can do.
Let’s combine practical scenarios to discuss what $BFUSD is used for and how to use it:
1️⃣ Binance contract mode initiates a unified margin mode
2️⃣ In contract mode, use USDT to purchase BFUSD
3️⃣ BFUSD will automatically act as USDT, serving as collateral while also earning an annualized return of over 8% in wealth management profits
In short, BFUSD is quite friendly to those who like to keep adding collateral like pumpers, and it's also beneficial for investors who hold contract positions for the long term.
Everyone knows that opening a contract requires freezing a certain percentage of collateral, and this portion of collateral was previously unusable.
Now, after using $BFUSD, this portion of collateral assets can earn wealth management profits, and it's not small; the official statement is: not less than 8% annualized return, which is even higher than simple coin-earning wealth management outside, and daily trading contract positions can also gain additional annualized benefits.
💡 Where does the high return of BFUSD come from?
1️⃣ Funding fee income: Earn profits from short contract positions when the funding rate is positive.
2️⃣ Staking rewards: Earn additional profits by staking crypto assets.
Binance has been iterating quickly on exchange products recently, and wealth management products keep looking for user pain points; let's give a thumbs up to Binance's product team.@Yi He