Wednesday, February 19, 2025

Binance Introduces BFUSD: A New Reward-Bearing Asset for Futures Traders

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KEY TAKEAWAYS

  • Binance introduces BFUSD, a reward-bearing asset for its futures trading platform, offering daily USDT rewards and flexible margin options.
  • BFUSD can be purchased with USDT and used as margin in USDⓈ-M Futures trading, enhancing trading flexibility and reward potential.
  • Rewards for BFUSD holders are funded through Binance’s delta hedging and Ethereum staking strategies, ensuring consistent daily USDT rewards.
  • Binance’s initiative with BFUSD highlights its commitment to innovative trading solutions, providing users with enhanced trading experiences.

Binance has launched BFUSD, a new reward-bearing asset designed exclusively for its futures trading platform. This innovative asset allows users to earn daily USDT rewards while providing flexible margin options for futures trading. The announcement was made here.

BFUSD is purchased with USDT and can be used as margin in USDⓈ-M Futures trading. By holding BFUSD in a USDⓈ-M Futures wallet, users qualify for daily USDT rewards. Additionally, trading with BFUSD on USDⓈ-M Futures offers boosted daily rewards. The asset is redeemable for USD stablecoin, providing flexibility and reassurance for traders.

How BFUSD Generates Rewards

The rewards for BFUSD holders are funded through Binance’s investment and hedging strategies, primarily involving delta hedging and Ethereum (ETH) staking. Delta hedging involves taking offsetting positions in the spot and futures markets to minimize exposure to price movements, while ETH staking generates additional income. These strategies collectively fund the daily USDT rewards distributed to BFUSD holders.

Binance calculates the Daily Reward Rates based on the previous day’s investment activities. A portion of these rewards is allocated to a Reserve Fund, initially backed by 1 million USDT, to protect against negative funding rates during challenging market conditions.

Purchasing and Using BFUSD

To purchase BFUSD, users need to log into their Binance account, navigate to the Futures section, and select BFUSD Reward. They can then convert USDT into BFUSD, ensuring they have sufficient balance in their USDⓈ-M Futures wallet. The Multi-Asset Mode must be enabled to use BFUSD as margin, enhancing trading flexibility.

BFUSD can be used as margin in futures trading, allowing traders to amplify their positions while earning daily rewards. To redeem BFUSD back into USD stablecoin, users can follow a straightforward process within the Binance platform. Currently, USDT is the only supported currency for purchases and redemptions.

BFUSD offers Binance Futures users a unique opportunity to enhance their trading experience by integrating a reward-bearing margin asset into their strategy. This initiative underscores Binance’s commitment to providing innovative solutions for its users.


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Shree Narayan Jha
Shree Narayan Jha
Shree Narayan Jha is a tech professional with extensive experience in blockchain technology. As a writer for CoinsHolder.com, Shree simplifies complex blockchain concepts, providing readers with clear and insightful content on the latest trends and developments in the industry.

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