Introducing BFUSD: a Binance asset with rewards for futures traders
2024-11-26
Main
BFUSD is a new exclusive Binance asset that provides rewards and offers flexible margin for futures trading.
Hold BFUSD to earn daily rewards in USDT and enhance them by trading USDⓈ-M futures for BFUSD as margin, with funding based on delta hedging strategies and ETH staking from Binance.
The Reserve Fund, with an initial collateral of 1 million USDT, protects the BFUSD hedging strategy from negative funding rates in challenging market conditions.

This is a general announcement. The products and services mentioned here may not be available in your region.
Introducing BFUSD - an exclusive margin asset from Binance designed to support your futures trading and earn additional rewards. BFUSD is available only on Binance and enhances capital efficiency through daily rewards in USDT. Daily rewards are funded from the income generated by Binance's hedging strategies and investments. You can earn passive income just by holding BFUSD in your USDⓈ-M futures wallet. Users trading USDⓈ-M futures for BFUSD receive increased rewards. In this article, you will learn how BFUSD works and how to best utilize this asset.
What is BFUSD?
BFUSD is a reward-bearing margin asset created specifically for Binance Futures users.
BFUSD can be purchased with USDT and used as margin for trading USDⓈ-M futures, thereby earning passive income. Just hold this asset in your USDⓈ-M futures wallet to qualify for daily rewards in USDT, and trading USDⓈ-M futures for BFUSD gives you the right to increased daily rewards in USDT.
BFUSD can be exchanged for the USD stablecoin. Binance employs a delta-neutral investment and hedging strategy to support BFUSD, making this asset a stable means of margin trading. This guarantees traders flexibility and confidence.
How does BFUSD work?
BFUSD generates rewards funded by Binance's strategies for delta hedging and Ethereum (ETH) staking. These investments and hedging provide passive income that ensures rewards for BFUSD holders.
Funding rewards
Delta hedging: Binance employs a delta-neutral strategy, hedging crypto assets like Ethereum between the spot and futures markets. This involves opening offsetting positions to minimize the impact of price changes to earn funding fees with minimal market risk.
ETH Staking: Binance uses the proceeds from the sale of BFUSD to purchase crypto assets (such as ETH), which are then staked to earn rewards. These staking rewards form part of the income used to pay rewards to BFUSD holders.
Daily reward rate
Every day, Binance calculates the daily reward rates based on the income generated from investments in the previous day (minus costs and fees).
Distribution: part of the daily reward is distributed as USDT rewards among BFUSD holders. An additional portion is distributed among BFUSD holders who actively traded USDⓈ-M futures that day. The remainder of the daily reward is allocated to the Reserve Fund (see below).
Reserve Fund
To protect users from negative funding rates, Binance has created a Reserve Fund with an initial collateral of 1 million USDT. This fund serves as a buffer in case of unfavorable market conditions, such as negative funding rates. The Reserve Fund is continuously replenished from a portion of the daily rewards from BFUSD and grows in proportion to the effectiveness of BFUSD's investment and hedging strategies, providing protection against negative funding rates.
Please note that Binance periodically adjusts the rate of replenishment of the Reserve Fund.
How to buy BFUSD
Purchasing BFUSD is a simple process.
Log into your Binance account.
Go to the Futures section and select BFUSD Rewards.
Buy BFUSD: enter the amount of USDT you wish to convert, ensuring that your USDT balance in your USDⓈ-M futures wallet is sufficient.
Confirm the transaction by reviewing the terms and conditions.
Please note that currently, the only supported currency for purchasing BFUSD is USDT, so you must have enough USDT in your USDⓈ-M futures wallet. Additionally, to use BFUSD as margin, you need to activate the multi-asset mode, which allows the use of multiple assets as margin and enhances trading flexibility.
The maximum limit for purchasing BFUSD is determined by your VIP level on Binance, and the estimated amount of your purchase must meet this level. A fee may be charged for the purchase and redemption of BFUSD, which is reflected in the conversion quote displayed before confirming the transaction.
How to use BFUSD
BFUSD is not just a profitable asset but a useful addition to your trading toolkit. You can use BFUSD as margin, which allows you to expand your trading opportunities and receive daily rewards. Below are detailed descriptions of various aspects of using this asset: from setting it up as margin to reverse exchanging it for USD stablecoins.
Using BFUSD as margin for futures trading. BFUSD will lay a solid foundation for your trading. This asset can be used as margin to directly secure your futures positions without any conversion. To take advantage of these benefits, activate the multi-asset mode in your account settings: this will allow you to use BFUSD as margin, making your capital work for you even more effectively.
Earning daily rewards with BFUSD. Enhance your trading strategies with passive income. By simply holding BFUSD in your USDⓈ-M futures wallet, you can receive daily rewards in USD stablecoins at a base rate. If you make at least one USDⓈ-M futures trade during the day, you will qualify for an increased rate. These rewards are automatically credited to your futures wallet the next day, so the increased rate can work for you daily.
Exchanging BFUSD for the USD stablecoin. Want to convert the asset back? Exchanging BFUSD is just as easy. Log into your account, go to the 'Futures' section, and select 'BFUSD Rewards'. Then select redemption, enter the amount of BFUSD you wish to convert back to USD stablecoin, check the associated transaction fees, accept the terms, and confirm the transaction. The USD stablecoin will be credited to your USDⓈ-M futures wallet.
Please note that at launch, only the USDT stablecoin is supported for purchase and redemption.
Conclusion
BFUSD provides Binance futures users the opportunity to expand their trading capabilities. By integrating BFUSD into your strategy, you can use this coin as a profitable margin asset, receive daily rewards in USD stablecoins, and manage your funds with maximum flexibility. The ability to use BFUSD as margin allows you to maximize your trading opportunities while simultaneously earning passive income from an additional source.
Remember, BFUSD is an exclusive offering from Binance, the world's leading cryptocurrency derivatives platform. This underscores our commitment to innovation and opens up additional opportunities for users to optimize their trading. Explore the benefits of BFUSD and see how this asset can help you trade futures on Binance!