#BFUSD
Bfusd
BFUSD is a reward-bearing margin
asset introduced by Binance for
futures trading.
It allows users to earn daily rewards in
USDT by holding BFUSD, with
additional rewards for those actively
trading USDⓈ-M Futures using BFUSD
as collateral.
These rewards are funded through
Binance’s strategies like delta-neutral
hedging and Ethereum staking.
Since its launch in November 2024,
BFUSD has seen significant adoption,
with 760 million BFUSD in circulation
and a Reserve Fund of 7.2 million
$Usdt
as of January 2025.
The Reserve Fund is designed to protect BFUSD
from negative funding rates, ensuring stability during tough market
conditions.
Binance has also added new features to BFUSD, including support for USDC,
a Pre-Buy/Pre-Redeem reservation system, and enhanced
transparency-focused data metrics.8 Users can now purchase and
redeem BFUSD with USDC, and all
BFUSD rewards are issued in USDC,
streamlining user earnings.8
Despite Binance’s assurances, some
users remain skeptical about BFUSD’s
reliability due to its high APY, drawing
comparisons to the collapsed
algorithmic stablecoin TerraUSD.
Binance has clarified that BFUSD is not
a stablecoin but an asset designed
exclusively for Binance Futures users.
