Binance Unveils BFUSD
On Monday, Binance announced an upcoming asset named BFUSD, which some observers likened to a high-yield stablecoin. The crypto exchange clarified that despite the ‘USD’ in its name, BFUSD is not a stablecoin, but rather a reward-bearing margin asset for futures trading. Binance stated on X that it is not yet launched, emphasizing that investors should be aware of its true nature.
The asset boasts an attractive 19.55% annual percentage yield, which has garnered significant attention. Some comparisons were drawn to the now-defunct TerraLUNA, known for similar high yields through its Anchor Protocol. However, details on how BFUSD will generate yield remain unclear, with customer support promising more information soon.
The launch page explains that users can utilize BFUSD as collateral without the need for staking or locking their funds. Instead, users hold the asset in a UM wallet, receiving daily airdrops to their UM Futures Wallet based on hourly snapshots of their holdings. Users are categorized with a limit quota of BFUSD dependent on their VIP level.
Recent trends have seen various firms introducing tokenized products pegged to the U.S. dollar but not fitting the traditional stablecoin model, such as BlackRock's BUIDL token and Ethena's USDe.
Binance originally launched its stablecoin, Binance USD (BUSD), in 2019 with Paxos as its issuer and custodian. However, following regulatory pressures, Binance is phasing out BUSD support by February 2024, recommending a switch to First Digital USD (FDUSD).
Comments (4)
Modesta Ezugwu
17:15 - 15/12/2024
This is good
Ayayama Uttah
09:41 - 12/12/2024
Great
Bashir Abubakar
05:17 - 12/12/2024
Nice GM
Adeniji Oyewale Michael
04:36 - 08/12/2024
Nice one