Binance BFUSD: the new margin asset with daily rewards

Binance, global leader in the blockchain ecosystem and the largest cryptocurrency exchange platform by trading volume and number of users, recently announced the launch of BFUSD. 

This is the first margin asset with daily rewards issued by a cryptocurrency exchange. This innovation offers users a dual opportunity: to generate passive income simply by holding BFUSD or to access higher reward rates when trading futures using this asset as margin.

What is BFUSD and how it works on Binance

BFUSD is a margin asset that can be purchased and redeemed directly on Binance at a 1:1 ratio with a stablecoin pegged to the US dollar (USD), subject to applicable fees. One of the most attractive features of BFUSD is its high collateralization value, nearly 100%, making it a strategic and convenient choice for futures trading.

Binance uses an innovative strategy to fund BFUSD rewards, leveraging a delta hedging system that balances assets between spot and futures markets to collect funding fees. Additionally, part of the rewards comes from Binance’s staking activity.

The advantages of BFUSD for futures traders

With BFUSD, users can access a range of exclusive benefits that enhance their trading experience on the largest and most liquid derivatives platform in the world:

1. Daily returns: Binance calculates the daily yield rates of BFUSD, offering two types of APY (Annual Percentage Yield):
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2. Yields are distributed daily in USDT directly to holders of BFUSD.
3. Stable and sustainable returns: the reward rates are determined based on the profits generated by Binance’s investment and hedging strategy, ensuring that they never fall below zero. This mechanism protects returns even during unfavorable bull and bear market periods.
4. BFUSD Reserve Fund: to ensure the sustainability of the project, Binance has established an initial reserve fund of 1 million USDT. This fund is used to support the hedging and investment strategy, offsetting any negative funding rates.

How to start 

Users can purchase BFUSD on the Binance platform and use it immediately as margin for bull and bear futures trading. 

The simplicity of use and the high collateralization value make BFUSD an ideal choice for both experienced and beginner traders who wish to optimize their returns.

Jeff Li, VP of Product at Binance, emphasized:

“As a global leader in crypto derivative products, we are always looking for innovations to offer greater utility to our users. BFUSD is an exciting addition, allowing users to earn daily rewards by trading futures.”

BFUSD represents a significant step forward in the evolution of Binance’s offerings. Thanks to its ability to combine passive income and advanced trading tools, BFUSD positions itself as an ideal solution for traders who want to maximize the opportunities offered by the crypto markets.

If you are interested in exploring the potential of BFUSD, visit the official Binance website and find out how to integrate this innovative asset into your bull and bear trading strategy.