✨ Binance to Launch BFUSD, a Reward-Bearing Margin Asset
posted 19 Nov 2024
Binance, a leading crypto exchange by trading volume, announced the launch of a new asset, BFUSD. The news has been actively shared on social media, with many users on X assuming BFUSD is a stablecoin.
Replying to the news aggregator Zoomerfield referring to a stablecoin with 19.55 APY (Annual Percentage Yield), Binance Support wrote that the asset hasn’t been launched yet, adding they’ll share more details including how the rewards are determined.
However, the exchange clarified that the upcoming asset is not actually a stablecoin, but a reward-bearing margin asset for futures trading.
Replying to the news aggregator Zoomerfield referring to a stablecoin with 19.55 APY (Annual Percentage Yield), Binance Support wrote that the asset hasn’t been launched yet, adding they’ll share more details including how the rewards are determined.
Some X users shared concerns over the asset, wondering where the yield comes from. They drew comparisons between the Terra USD (UST) algorithmic stablecoin which lost its dollar peg in 2022 and couldn’t recover.
UST promised holders 20% APY, but as it turned the project couldn’t deliver its promise.
UST promised holders 20% APY, but as it turned the project couldn’t deliver its promise.
However, based on the information available now, BFUSD looks like an incentive program depending on the size of a user quota.
Information on BFUSD on Binance Futures. Source: binance.com
Previously, in 2019 Binance launched the stablecoin BUSD but discontinued it at the end of 2023 following regulatory pressure from the SEC.
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