{"id":18915,"date":"2024-11-26T14:59:47","date_gmt":"2024-11-26T12:59:47","guid":{"rendered":"https:\/\/forklog.com\/en\/binance-to-launch-bfusd-margin-asset-with-passive-income-potential\/"},"modified":"2024-11-26T14:59:47","modified_gmt":"2024-11-26T12:59:47","slug":"binance-to-launch-bfusd-margin-asset-with-passive-income-potential","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/binance-to-launch-bfusd-margin-asset-with-passive-income-potential\/","title":{"rendered":"Binance to Launch BFUSD Margin Asset with Passive Income Potential"},"content":{"rendered":"<p>On November 27, Binance will introduce BFUSD\u2014described as a &#8220;reward-bearing margin asset in [USDT].&#8221; This asset allows users to earn passive income through holding or trading futures based on it.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Introducing BFUSD!<\/p>\n<p>Our new reward-bearing asset built for Futures users is available now. <\/p>\n<p>BFUSD purchase will open on Nov 27, 2am UTC.<\/p>\n<p>Try now ? <a href=\"https:\/\/t.co\/W0WvVrdYpz\">https:\/\/t.co\/W0WvVrdYpz<\/a> <a href=\"https:\/\/t.co\/0ZrEsM9wGE\">pic.twitter.com\/0ZrEsM9wGE<\/a><\/p>\n<p>\u2014 Binance (@binance) <a href=\"https:\/\/twitter.com\/binance\/status\/1861311443276014012?ref_src=twsrc%5Etfw\">November 26, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The exchange assures that the product&#8217;s yield &#8220;will never drop below zero.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;BFUSD holders receive a base <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> with daily accrual, even if they do not trade futures, while those eligible to trade marginable futures with USDT and <\/em><em>USD\u0421<\/em><em> as collateral and settlement currency receive an increased APY for that day,&#8221;<\/em> Binance explained.<\/p>\n<\/blockquote>\n<p>The asset is available to Binance Futures users in supported jurisdictions, excluding the United States.<\/p>\n<p>In a conversation with<a href=\"https:\/\/www.theblock.co\/post\/328216\/binance-bfusd-launch-apy\"> The Block<\/a>, a platform representative clarified that based on historical data, from November 20 to 25, the base APY ranged from 12-35%, while the enhanced version was 15-47%.<\/p>\n<p>BFUSD &#8220;is not a stablecoin,&#8221; as it cannot be withdrawn from Binance or traded on the open market.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The asset can only be used as margin for futures trading on Binance and converted into USDT,&#8221;<\/em> the statement said.<\/p>\n<\/blockquote>\n<p>BFUSD generates profit through two strategies:<\/p>\n<ol class=\"wp-block-list\">\n<li>Ethereum staking.<\/li>\n<li>Delta hedging of crypto assets between spot and futures markets.<\/li>\n<\/ol>\n<p>A Binance representative stated that BFUSD&#8217;s yield generation mechanism differs from USDe by Ethena Labs, but did not provide details.<\/p>\n<p>The latter&#8217;s architecture is based on a popular <span data-descr=\"traditional finance\" class=\"old_tooltip\">TradFi<\/span> strategy of delta-neutral trading and portfolio management.\u00a0<\/p>\n<p>This strategy is often used in the options market to manage risks associated with changes in the underlying asset&#8217;s price. It is a form of Cash-and-Carry trading and is considered safe under favorable conditions.<\/p>\n<p>An informed source told the publication that &#8220;USDe itself does not bear rewards. Users of the &#8216;synthetic dollar&#8217; can use it at their discretion,&#8221; while &#8220;BFUSD is a margin asset that provides passive income for holders.&#8221;<\/p>\n<p>In a bear market, funding rate fees become negative, but they will be offset by a reserve fund. This fund will be formed from a portion of the APY &#8220;in good times.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Historical data shows that the ETHUSDT funding rate remained positive on 350 out of 365 days. On a quarterly basis, the metric has been mostly positive since the futures platform&#8217;s inception in 2019. This provides a solid foundation for BFUSD&#8217;s ability to consistently generate APY,&#8221;<\/em> Binance assured.<\/p>\n<\/blockquote>\n<p>The reserve fund is expected to initially amount to 1 million USDT.<\/p>\n<p>A Binance representative did not disclose the exact ratio between user rewards and contributions to the structure. He stated that it would be &#8220;sufficient to protect holders.&#8221;<\/p>\n<p>Currently, the fee for purchasing and redeeming BFUSD is set at 0.1% and may be subject to change.<\/p>\n<p>From November 27 to December 26, the fee will be zero.\u00a0<\/p>\n<p>Previously, Binance dismissed comparisons of BFUSD with Terra&#8217;s algorithmic stablecoin UST.<\/p>\n<p>Earlier, similar parallels with UST were drawn for USDe by 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.\u00a0<\/p>\n<p>On August 5, amid <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>On November 27, Binance will introduce BFUSD\u2014described as a &#8220;reward-bearing margin asset in [USDT].&#8221; This asset allows users to earn passive income through holding or trading futures based on it. Introducing BFUSD! Our new reward-bearing asset built for Futures users is available now. BFUSD purchase will open on Nov 27, 2am UTC. Try now ? [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18914,"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-18915","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":"58","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18915","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=18915"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/18914"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=18915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=18915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=18915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}