{"id":18729,"date":"2024-11-19T16:18:00","date_gmt":"2024-11-19T14:18:00","guid":{"rendered":"https:\/\/forklog.com\/en\/binance-responds-to-comparisons-between-upcoming-bufsd-and-terras-ust\/"},"modified":"2024-11-19T16:18:00","modified_gmt":"2024-11-19T14:18:00","slug":"binance-responds-to-comparisons-between-upcoming-bufsd-and-terras-ust","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/binance-responds-to-comparisons-between-upcoming-bufsd-and-terras-ust\/","title":{"rendered":"Binance Responds to Comparisons Between Upcoming BUFSD and Terra&#8217;s UST"},"content":{"rendered":"<p>The soon-to-be-launched token BUFSD, which promises an annual yield of 19.55%, is not a stablecoin. Representatives from Binance clarified that the asset is a margin product with rewards for futures trading. <strong> <\/strong><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">BFUSD is not yet launched. <\/p>\n<p>To be clear, it is not a stablecoin but a reward-bearing margin asset for futures trading. <\/p>\n<p>We are glad to see the community&#8217;s interest and will be sharing more details soon including how APY is determined<\/p>\n<p>\u2014 Binance Customer Support (@BinanceHelpDesk) <a href=\"https:\/\/twitter.com\/BinanceHelpDesk\/status\/1858613807494688975?ref_src=twsrc%5Etfw\">November 18, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe asset is not yet launched. We will provide details, including the mechanism for determining <a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%93%D0%BE%D0%B4%D0%BE%D0%B2%D0%B0%D1%8F_%D0%BF%D1%80%D0%BE%D1%86%D0%B5%D0%BD%D1%82%D0%BD%D0%B0%D1%8F_%D0%B4%D0%BE%D1%85%D0%BE%D0%B4%D0%BD%D0%BE%D1%81%D1%82%D1%8C\" title=\"\">APY<\/a>, later,\u201d<\/em> promised platform representatives.<\/p>\n<\/blockquote>\n<p>This response came after comparisons were drawn with Terra&#8217;s algorithmic stablecoin UST, which offered a double-digit yield and whose collapse caused over $40 billion in losses to the crypto industry.<\/p>\n<p>In April 2024, during a court case, a jury found Terraform Labs and its founder Do Kwon <a href=\"https:\/\/forklog.com\/en\/news\/do-kwon-found-guilty-of-fraud-in-sec-case\">guilty<\/a> of defrauding investors and securities fraud. <\/p>\n<p>In South Korea, the entrepreneur faces numerous charges, including violations of capital markets law. <\/p>\n<p>Currently, <a href=\"https:\/\/forklog.com\/en\/news\/do-kwons-extradition-from-montenegro-delayed-again\">the issue<\/a> of Kwon&#8217;s extradition to the US or South Korea is being resolved.<\/p>\n<p>According to Binance, traders will be able to use BFUSD as collateral without &#8220;locking&#8221; their funds. Instead, holders will keep the asset in a UM-Wallet and accumulate daily airdrops sent to the UM Futures Wallet based on snapshots.<\/p>\n<p>Users will have a limited BFUSD quota depending on their social rating on Binance \u2014 VIP level.<\/p>\n<p>Previously, similar parallels with UST were drawn with USDe from Ethena Labs. At launch, the community <a href=\"https:\/\/forklog.com\/en\/news\/doubts-arise-over-ethena-labs-stablecoin-viability\">questioned the viability<\/a> of the &#8220;synthetic dollar,&#8221; partly due to potential yield inversion. <\/p>\n<p>The stablecoin&#8217;s architecture is based on a delta-neutral trading and portfolio management strategy popular in <span data-descr=\"traditional finance\" class=\"old_tooltip\">TradFi<\/span>. <\/p>\n<p>This strategy is often used in the options market to manage risks associated with changes in the price of the underlying asset. It is a type of Cash-and-Carry trading and is considered safe under favorable conditions.<\/p>\n<p>Back on August 5, amidst <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-falls-below-50000-as-ethereum-dips-under-2200\">market turbulence<\/a>, the redemption volume of the &#8220;synthetic dollar&#8221; by its issuer Ethena Labs <a href=\"https:\/\/forklog.com\/en\/news\/usde-redemptions-surpass-100-million-amid-market-downturn\">exceeded $100 million<\/a>. The token maintained its peg to the USD.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The soon-to-be-launched token BUFSD, which promises an annual yield of 19.55%, is not a stablecoin. Representatives from Binance clarified that the asset is a margin product with rewards for futures trading. BFUSD is not yet launched. To be clear, it is not a stablecoin but a reward-bearing margin asset for futures trading. We are glad [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18728,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[744,807,852],"class_list":["post-18729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-binance","tag-stablecoins","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"35","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=18729"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18729\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/18728"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=18729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=18729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=18729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}