Binance Academy

Key Takeaways

Resolv is a decentralized finance (DeFi) protocol that maintains a stablecoin known as USR. It is pegged to the US dollar and backed by ether (ETH) and bitcoin (BTC).

Resolv uses a market-neutral strategy by hedging ETH and BTC with perpetual futures to maintain price stability.

The protocol also features the RLP and the RESOLV tokens. RLP serves as an insurance layer to protect USR's peg and absorbs systemic risk, while RESOLV is a governance token.

The Resolv system distributes profits daily from staking and hedging activities to RLP holders and users who stake USR.

Introduction

When dealing with decentralized finance (DeFi) services, stablecoins are often an essential part of the experience. Whether you are a developer or a user, stability, collateral security, and resistance to centralized risk are key factors to consider when using DeFi products..

Resolv is a protocol designed to offer a unique stablecoin system for the growing DeFi space. According to the official documentation, its native stablecoin, USR, is backed by crypto assets (like ETH and BTC), overcollateralized, and designed to hold its dollar peg through smart collateral management and market-neutral strategies.

How Resolv Works

USR stablecoin

USR is a stablecoin pegged to the US dollar and backed by on-chain ETH, staked ETH (stETH), and BTC. Users can mint or redeem USR on a 1:1 basis with supported collateral.

Key characteristics of USR:

Collateralized with a 100%+ reserve of ETH and BTC.

Overcollateralized via an insurance layer (RLP token).

Can be staked to create stUSR, a yield-bearing version of USR.

Designed to maintain its peg through arbitrage and redemption mechanisms.

Market neutrality via hedging

One of Resolv's defining features is its so-called delta-neutral strategy. The protocol maintains its dollar peg by hedging ETH and BTC price fluctuations using perpetual futures contracts. By using short positions, the gains or losses in the spot price of the collateral are offset by the futures positions.

In other words, if the spot price goes up, the profit is offset by the losses of the short positions, and if the spot price goes down the losses are offset by the shorts’ profit. This dynamic helps keep the USR value relatively stable in USD terms.

In addition, hedging takes place across both centralized (CEX) and decentralized exchanges (DEX) to reduce platform-specific risk. Exposure to centralized entities is carefully managed with dynamic collateral limits, custodial solutions, and a dedicated Protection Layer (RLP).

The RLP Token

What Is RLP?

RLP (Resolv Liquidity Pool) acts as a second-layer buffer and insurance mechanism for USR. It holds surplus ETH and BTC collateral above the amount required to back USR directly. 

RLP is designed to:

Absorb market risk and counterparty risk from centralized exchanges.

Protect USR’s peg during volatile or stressed market conditions.

Offer higher yield potential to compensate for taking on risk. 

RLP can be minted and redeemed by users using collateral, but unlike USR, its price fluctuates depending on the protocol’s collateral ratio and profitability.

Even if the Protection Layer (RLP) becomes depleted, USR’s backing remains fully intact and redeemable. In such cases, the system auto-balances: a thinner RLP pool means higher yields, which attracts more collateral and re-strengthens the insurance buffer.

Profit Generation and Distribution

Resolv’s model is not only about stability—it’s also structured to generate sustainable, predictable returns through a mix of ETH staking rewards, funding fees from perpetual futures, and optimized collateral management.

These profits are distributed daily across three main streams:

Base reward: Paid to both staked USR (stUSR) holders and RLP holders.

Risk premium: Exclusive rewards to RLP holders for assuming greater systemic risk.

Protocol fees: Allocated to the Resolv treasury for future development and operations.

If losses are incurred, such as from negative funding rates in futures, RLP absorbs those losses, not USR. This separation helps preserve USR’s peg and ensure user confidence in its stability.

Governance and Utility: RESOLV Token

What Is RESOLV?

The RESOLV token is the native utility and governance token of the Resolv ecosystem. It plays a role in protocol governance, reward distribution, and community participation.

Token supply and allocation:

Total supply: 1 billion RESOLV

10% allocated to early airdrop campaigns.

40.9% for ecosystem and community incentives.

26.7% for team and contributors (with vesting).

22.4% for investors (with vesting).

stRESOLV and Governance

RESOLV holders can stake their tokens to receive stRESOLV, which unlocks voting rights on governance proposals, staking rewards from protocol profits, Points Boosts in Resolv Points campaigns (similar to user incentives in other DeFi protocols).

Long-term stakers benefit from reward multipliers, with the highest boost (2x) reserved for users who maintain staked positions for over a year.

RESOLV on Binance HODLer Airdrops

On June 11, 2025, Binance announced RESOLV as the 21th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from May 28 to 31 were eligible to receive RESOLV airdrops. A total of 20 million RESOLV tokens were allocated to the program, accounting for 2% of the total token supply.

RESOLV was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Resolv presents an alternative approach to stablecoin architecture, one that leans on crypto-native collateral, market-neutral strategies, and a layered defense system to manage systemic risk. With hedging, staking, and insurance built into its core, Resolv aims to offer a more sustainable stablecoin model without relying on fiat reserves or centralized issuers.

Further Reading

What Is a Stablecoin?

What Are Funding Rates in Crypto Markets?

What Is Short Selling?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

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What Is a Bitcoin Treasury Strategy?What Is a Bitcoin ETF?What Is a Bear Market?How Can Tariffs Impact the Crypto Markets?What Is a Credit Spread?What Is Proof of Reserves (PoR)?8 Trading Strategies for Binance Options RFQ

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Key Takeaways

Binance Options RFQ offers different trading strategies to fit many kinds of market views and risk levels.

Strategies range from simple ones like single calls and puts to more complex ones like spreads, straddles, and strangles.

These strategies help you take advantage of price changes, reduce risk, and save on costs.

Whether you’re a big institutional trader or an experienced retail user, knowing these strategies can improve your options trading on Binance.

Introduction

Binance Options RFQ is a platform that lets you trade options easily and quickly, especially for big or complicated trades. Along with giving you access to good prices and big liquidity, it offers several trading strategies called multi-leg strategies.

These strategies let you make trades based on what you think will happen in the market and how much risk you want to take. In this article, we’ll explain eight popular trading strategies you can use on Binance Options RFQ.

1. Single Call

A Single Call gives you the right (but not the obligation) to buy an asset at a fixed price (strike price) by a certain date. If the market price goes above that fixed price, you can use the option to make a profit. If not, the option expires worthless and you lose what you paid for it.

When the option is in-the-money at expiry, it will automatically be exercised and you earn the difference between the market price and strike price, minus any premiums and fees paid. If the market price stays below the strike price (called out-of-the-money), the option expires and you lose the premium you paid for the contract.

When to use: You expect prices to go up before the contract expires.

2. Single Put

A Single Put works the opposite way. It gives you the right (but not the obligation) to sell an asset at a fixed price by a certain date. If the market price falls below that fixed price, you can use the contract to make a profit. If not, the option expires worthless and you lose the premium paid for the contract.

When to use: You expect prices to go down before the contract expires.

3. Call Spread

A Call Spread strategy involves buying a call option at one strike price and simultaneously selling another call option with a higher strike price, both having the same expiration date. This creates a limited risk and limited reward position. 

By selling the higher strike call, you collect a premium that helps offset the cost of buying the lower strike call, reducing your upfront expense. However, your maximum profit is capped and realized if the underlying price finishes at or above the higher strike at expiry. If the price doesn’t rise enough, the spread may expire worthless or with limited profit.

When to use: You expect the price to go up moderately and want to reduce upfront costs.

4. Put Spread

The Put Spread strategy is the put equivalent of the Call Spread. You buy a put option at a higher strike price and sell a put option at a lower strike price, both expiring on the same date. This limits your downside risk and potential profit. 

The premium received from selling the lower strike put helps reduce the cost of your long put. The maximum profit occurs if the asset price falls to or below the lower strike price at expiry. If the price doesn’t decline enough, your profit is limited or you could face a partial loss.

When to use: You expect prices to fall and want to reduce upfront costs.

5. Calendar Spread

A Calendar Spread is a strategy where you buy and sell options that have the same strike price but different expiration dates. Usually, you sell an option that expires soon (near-term) and buy an option with a later expiration date (long-term). For example, you might sell a call option that expires in one week and buy another call option with the same strike price that expires in one month.

This strategy benefits from how options lose value over time, a process called time decay. The option you sell (short-term) will lose value faster than the option you buy (long-term), letting you potentially profit if the price of the underlying asset stays near the strike price. It’s useful if you expect the price to stay relatively stable in the short term but move later on.

When to use: If you have a view on both short-term and long-term price movements or want to take advantage of time decay differences between options.

6. Diagonal Spread

A Diagonal Spread is similar to a Calendar Spread but with one key difference—you buy and sell options with different strike prices and different expiration dates. For example, you might sell a near-term call option with a higher strike price and buy a longer-term call option with a lower strike price.

This setup gives you more flexibility because you’re not only choosing different expiration dates but also different strike prices. The goal is to benefit from both time decay and potential price movement. The short-term option you sell decays faster, while the longer-term option you buy gives you exposure to price changes over a longer period. It can also help reduce the cost of your position compared to just buying a long-term option.

When to use: When you want more control over strike prices and expirations to take advantage of expected price moves and time decay across different time frames.

7. Straddle

A Straddle involves buying both a call and a put option at the same strike price and expiration date. This strategy profits when the price of the underlying asset makes a big move in either direction—up or down—because one of the options will increase significantly in value. 

However, since you are buying two options, you pay two premiums, so the price move must be large enough to overcome this cost. If the asset price does not move much, both options lose value due to time decay, and you may lose the premiums paid.

When to use: You expect big price swings but aren’t sure which way it will go.

8. Strangle

A Strangle is similar to a Straddle but involves buying a call and a put option with the same expiration date but different strike prices. Typically, the call strike is above the current market price and the put strike is below. Because these options are usually out-of-the-money, the overall cost (premiums) is lower than a Straddle. 

However, to make a profit, the underlying price must move beyond either strike by an amount large enough to cover the premiums paid. It’s a less expensive way to trade based on volatility but requires a bigger price move than a Straddle to be profitable.

When to use: You expect volatility and want a lower-cost way to trade on big price moves.

Closing Thoughts

Knowing these eight strategies on Binance Options RFQ can help you trade options better and smarter. From simple calls and puts to more advanced spreads and volatility plays, it’s important to choose the right strategy based on your risk profile and price expectations. No matter if you’re a big institution, a skilled retail trader, or a VIP client, Binance Options RFQ gives you the tools to trade efficiently.

Further Reading

What Is Binance Options RFQ? 

What Is a Credit Spread?

What Are Options Contracts?

Binance Beginner's Guide

Disclaimer: This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

In bond trading, a credit spread is the difference in yield between a safer bond (like a Treasury) and a riskier bond (like a corporate bond). The bigger the spread, the higher the perceived risk.

Narrow spreads suggest investors feel confident in the economy, while wide spreads often signal uncertainty or potential downturns.

Factors like credit ratings, interest rates, market sentiment, and bond liquidity influence the size of the spread, with lower-rated or less liquid bonds typically having wider spreads.

In options, a credit spread means selling one option and buying another to receive a net credit, limiting both potential profit and loss. Common examples include bull put spreads and bear call spreads.

Introduction

Credit spreads are an important concept in both bond investing and options trading. In the bond market, they can show how risky different bonds are and provide insights into the economy's health. This article breaks down what credit spreads are, how they work, and why they matter. We'll first discuss credit spreads in the context of bonds and then briefly explore the concept in options trading.

What Are Credit Spreads?

A credit spread is the difference in returns between two loans or bonds that will be paid back at the same time but have different credit ratings (risk levels).

In bond trading, the concept relates to comparing two bonds that mature at the same time, one from a safer borrower and one from a riskier one (such as debt issued by emerging markets or lower-rated businesses). 

The credit spread shows how much more return the riskier bond offers to make up for the extra risk. Unsurprisingly, this difference can affect how much you earn on your investment.

How Credit Spreads Work

Typically, investors compare the yield of a corporate bond with that of a government bond, such as a US Treasury note, which is considered low-risk. For example, if a 10-year US Treasury bond yields 3% and a 10-year corporate bond yields 5%, the credit spread is 2% or 200 basis points.

Many investors use credit spreads to understand not only how risky a single company’s bond is but also how healthy the overall economy is. When credit spreads are wide, it often signals economic trouble. When they’re narrow, it suggests confidence in the economy.

What affects credit spreads?

Many things can cause credit spreads to go up or down:

Credit ratings: Lower-rated bonds (like junk bonds) usually have higher yields and bigger spreads.

Interest rates: When interest rates rise, riskier bonds often see their spreads increase.

Market sentiment: When market confidence is low, even solid companies can see their bond spreads widen.

Liquidity: Bonds that are harder to trade present higher trading risks and tend to have wider spreads.

Credit spread examples

Small spread: A top-rated corporate bond pays 3.5%, and a Treasury bond pays 3.2%. The spread is 0.3% or 30 basis points. This indicates strong trust in the company.

Large spread: A lower-rated bond pays 8%, while the Treasury still pays 3.2%. The spread is 4.8% or 480 basis points. This larger spread indicates a higher risk.

What Credit Spreads Say About the Economy

Credit spreads are not only investment tools but also serve as economic indicators. During periods of economic stability, the difference in yields between government and corporate bonds tends to be small. This is because investors are confident in the economy’s ability to support corporate profits and solvency. In other words, people feel confident that companies will pay their debts.

Conversely, in times of economic downturn or uncertainty, investors want to avoid risk. They jump into safer assets like the US Treasuries, driving their yields down, while demanding higher yields for riskier corporate debt, especially lower-rated ones. This causes credit spreads to widen, which in some cases precede bear markets or recessions.

Credit Spread vs. Yield Spread

People sometimes mix up these terms. A credit spread is the difference in yields because of different credit risks. A yield spread is more general and can refer to any yield difference, including due to time to maturity or interest rates.

Credit Spreads in Options Trading

In options trading, the term "credit spread" refers to a strategy where you sell one option contract and buy another with the same expiration date but a different strike price. You get more from the option you sell than you pay for the option you buy. That difference between the contract prices (premium) is what makes the credit spread.

Here are two common types of credit spread strategies in options trading:

Bull Put Spread: This is used when you think the asset price will go up or stay the same. You sell a put option with a higher strike price and buy a put option with a lower strike price.

Bear Call Spread: This is used when you think the stock price will go down or stay below a certain level. You sell a call option with a lower strike price and buy a call option with a higher strike price.

Bear call spread example

Alice believes asset XY won’t go above $60, so she:

Sell a $55 call for $4 (she receives $400, since 1 option contract = 100 shares)

Buy a $60 call for $1.50 (she pays $150)

Alice ends up with a net credit of $2.50 per share, or $250 total. What happens next depends on where asset XYZ ends up at expiration:

If the price stays at or below $55, both options expire worthless. Alice keeps the initial $250 received.

If the asset ends between $55 and $60, the $55 call is used by the buyer, and Alice has to sell shares at $55. But her $60 call isn’t used. She still keeps some of the initial credit, depending on the final price.

If the stock goes above $60, both options are used. Alice sells shares at $55 and has to buy them back at $60, losing $500 in total. But since she received $250 upfront, her maximum loss is $250.

These trades are called credit spreads because you start off with a credit to your account when you open the position.

Closing Thoughts

Credit spreads are a helpful tool, especially for bond investors. They show how much extra return investors want for taking more risk and can also reveal how people feel about the economy. By keeping an eye on credit spreads, you can better understand the market, choose smart investments, and manage risk.

Further Reading

What Are Bonds and How Do They Work?

What Is a Yield Curve and How to Use It? 

How Can Tariffs Impact the Crypto Markets?

Interest Rates Explained

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

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Key Takeaways

The Sophon project is a blockchain initiative designed to facilitate consumer-focused applications within the ZKsync Elastic Chain ecosystem. 

As a Layer 2 (L2) built on ZK Stack, Sophon combines Ethereum’s security with high transaction throughput and low fees. 

Unlike many blockchains that focus on finance, Sophon is built for entertainment and lifestyle apps, like games and social platforms.

What Is Sophon?

Sophon is a ZK (zero-knowledge) chain within ZKsync’s Elastic Chain, a network of interoperable blockchains leveraging zk proofs for scalability and efficiency. Sophon prioritizes consumer-oriented applications, such as gaming, social platforms, and digital experiences. Its goal is to integrate cryptocurrency into everyday activities, making it accessible to non-crypto audiences through intuitive, user-centric platforms.

Sophon operates as a Validium, a type of L2 solution that stores data off-chain while maintaining Ethereum’s security for transaction validation. This allows Sophon to process transactions at a high throughput with minimal costs, addressing scalability challenges faced by Ethereum’s Layer 1 (L1).

How Sophon Works

ZK Stack and Elastic Chain integration

Sophon uses ZKsync’s technology, called ZK Stack, to build a fast and flexible blockchain. It’s part of the Elastic Chain, which is like a network of blockchains that share resources. This means users can move money or digital items between Sophon and other ZKsync chains easily. It also lets developers build apps that work across multiple chains, making everything more connected and scalable.

The Elastic Chain’s architecture allows Sophon to dynamically scale its capacity, accommodating growing demand for consumer applications. This is particularly relevant for resource-intensive use cases like gaming or real-time social interactions, where low latency and high throughput are critical.

Validium

Sophon’s Validium system is what makes it fast and affordable. Instead of storing every detail on Ethereum’s main network (which can be slow and expensive), Sophon handles most of the work off-chain. It only sends small proofs to Ethereum to confirm everything is correct. This keeps costs low and speeds things up, which is perfect for apps that need to process lots of actions quickly. 

Account abstraction

Sophon has a feature called account abstraction that makes using the blockchain simpler. Apps on Sophon can pay transaction fees for users, so you don’t need to worry about having crypto to cover costs. This “gasless” system makes it easier for people to try crypto apps without needing to understand how blockchain fees work.

Bridging assets

You can move crypto from Ethereum to Sophon using a bridge at portal.sophon.xyz. Some apps also let you buy SOPH tokens directly, making it easy to get started without needing to deal with other blockchains first.

Node operations

Sophon uses two kinds of nodes: Light Nodes, which are simpler and use a system called Avail to check data, and Full Nodes, which do heavier tasks like processing transactions. As of May 2025, only Sophon Labs runs the most important nodes, but the plan is to let more people join in to make the network more decentralized.

Sophon also has a Guardian Program that incentivizes participation through NFT-based memberships. These memberships, non-transferable until December 18, 2025, allow holders to run nodes or delegate to operators, contributing to network security.

Developer Support and Ecosystem

Building on Sophon

Sophon encourages developers to create high-throughput consumer applications, particularly in gaming, NFTs, and social platforms. The ZKsync CLI simplifies contract development, testing, and deployment, providing tools to streamline the process. The Sophon Foundation offers technical and financial support to developers.

Sophon Intelligence Agency (SIA)

Sophon has a $5 million program called the Sophon Intelligence Agency to support apps that use artificial intelligence (AI). It provides money and guidance to help developers build AI-powered projects, like games or tools that use smart technology to improve the user experience.

The SOPH Token

The SOPH token is the native cryptocurrency of the Sophon network, used for paying gas fees and staking to support network operations. The token has a fixed supply of 10 billion, with 57% allocated to the community through various mechanisms, including airdrops and liquidity mining programs. 

The remaining supply is distributed among node operators (20%), investors (with a three-year vesting period), the project team (four-year vesting), and ecosystem reserves for partnerships and liquidity provision.

SOPH on Binance HODLer Airdrops

On May 28, 2025, Binance announced Sophon as the 20th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from May 14 to 17 are eligible to receive SOPH airdrops. A total of 150 million SOPH tokens were allocated to the program, accounting for 1.5% of the total token supply.

SOPH was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Sophon is a blockchain ecosystem focused on building fun and easy-to-use apps, like games and social platforms. It uses ZKsync’s technology to keep transactions fast, cheap, and secure. With the SOPH token, developer tools, and a focus on community, Sophon’s mission is to create a space where crypto feels simple and welcoming.

Further Reading

What Are Bitcoin Layer 2 Networks?

What Is ZKsync and How Does It Work?

What Is Chain Abstraction?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

A Bitcoin treasury strategy consists of a company adding bitcoin to their strategic reserves.

Some do it in a more passive way, while others use their BTC holdings to create innovative financial assets, such as convertible debt and yield-bearing instruments linked to Bitcoin’s price.

Companies can leverage their strategic Bitcoin reserves to potentially improve capital efficiency, hedge against inflation, and attract new investment opportunities.

What Is a Bitcoin Treasury Strategy?

Picture a company’s treasury as its piggy bank—it’s where they keep money to pay bills, handle unexpected costs, or fund new projects. A bitcoin treasury strategy is when a company decides to put some of that money into bitcoin (BTC) alongside or instead of traditional assets like cash, bonds, or money market funds.

Companies like Strategy, Tesla, and even GameStop started adding it to their treasuries. Strategy (formerly MicroStrategy) alone holds about 576,230 BTC, worth over $61 billion as of May 2025.

Why Companies Adopt Bitcoin Treasury Strategies

Companies adopt bitcoin treasury strategies for different reasons, each addressing specific financial and operational goals. The potential benefits include enhanced global liquidity, value preservation, capital growth, and much more.

1. Liquidity and flexibility

Bitcoin’s global fungibility and 24/7 trading can provide more liquidity and flexibility. For companies with international operations, holding bitcoin can be used to simplify cross-border transactions.

2. Hedge against inflation

Due to bitcoin’s fixed supply of 21 million coins, many argue that it can be used as a hedge against fiat currency devaluation, especially in regions with volatile economies. Unlike traditional currencies, which can be inflated by central bank policies, bitcoin’s scarcity offers an independent store of value.

3. Diversification and investment potential

By holding BTC, companies can diversify their treasury portfolios beyond low-yield bonds or cash equivalents. Bitcoin’s historical price growth (though not a guarantee of future performance) attracts companies seeking long-term capital appreciation. For instance, Michael Saylor’s shift to a bitcoin-centric treasury strategy has redefined Strategy’s valuation, with more than half of its market capitalization tied to bitcoin holdings.

4. Attracting new investors

Bitcoin treasuries allow companies to tap into institutional capital pools that would otherwise be unable to access direct crypto investments. By offering BTC-linked financial instruments, such as convertible debt or equity tied to bitcoin’s value, companies can provide indirect crypto exposure, appealing to a wider range of traditional investors.

How a Bitcoin Treasury Strategy Works

Step 1: Make a plan

Companies decide how much bitcoin to hold based on their risk tolerance, cash flow needs, and strategic goals. Some companies, like Strategy, allocate a significant portion of their reserves to bitcoin, while others, like Tesla, maintain smaller positions relative to their market cap.

Step 2: Buy bitcoin

To get bitcoin, companies might use spare cash, take out loans, or sell stock. GameStop, for instance, sold debt in March 2025 that could turn into stock to buy bitcoin, which got investors excited and boosted its share price.

Step 3: Keep it safe

Given Bitcoin’s decentralized nature, secure storage is critical. Companies usually partner with qualified custodians to protect against fraud, theft, or hacking. The 2025 Bybit hack, which resulted in a $1.5 billion loss, underscores the importance of top-notch security measures.

Step 4: Financial products

Bitcoin lets companies think outside the box. They can create new financial products tied to bitcoin’s value, such as convertible debt and yield-bearing instruments. This may increase interest in the company’s stock without the need to change its main business model.

Step 5: Ensure compliance

Crypto rules are still a work in progress, so companies have to stay on top of regulations. Ideally, they should also use “mark-to-market” accounting, which means they update bitcoin’s value on their books regularly. Price volatility can lead to unrealized gains or losses, impacting earnings and balance sheet stability.

Potential Risks

Volatility: Bitcoin’s price fluctuations can cause earnings volatility and liquidity risks. Depending on the strategy adopted, a sharp decline in bitcoin’s price could strain a company’s financial position.

Security: While bitcoin offers cross-border liquidity and flexibility, companies must remain vigilant and implement strong custodial measures to prevent hacks and fraud.

Distraction from core business: In some cases, heavy focus on bitcoin may divert management attention (and resources) from primary operations, which may raise concerns about the company’s strategic alignment.

Bitcoin Treasury Holdings of Publicly Traded Companies

Below are some examples of publicly traded companies that adopt bitcoin treasury strategies. As of May 2025, there are at least 50 public companies with more than 100 BTC:

Strategy (MSTR): Originally an analytics software firm, Strategy transformed into a bitcoin treasury company, holding 576,230 BTC worth more than $63 billion. Its current strategy focuses on providing investors with crypto exposure.

Marathon Digital Holdings (MARA): Specializing in bitcoin mining and sustainable energy solutions, Marathon holds more than 48,100 BTC worth over $5 billion.

Riot Platforms (RIOT): Focused on bitcoin mining and bitcoin-driven infrastructure, Riot holds more than 19,200 BTC worth over $2 billion at the time of writing.

Tesla (TSLA): If we consider its size and market cap, Tesla adopts a more conservative approach, with 11,509 BTC worth over $1 billion.

Closing Thoughts

Bitcoin treasury strategies are shaking up how companies handle their money, turning their cash reserves into tools for creating capital, managing cash flow, and attracting investors. By leveraging bitcoin’s unique properties, companies can potentially hedge against inflation, diversify reserves, and attract new capital. As crypto adoption continues to grow, Bitcoin treasury strategies can offer an interesting alternative to traditional treasury management.

Further Reading

What Is Bitcoin and How Does It Work?

How Can Tariffs Impact the Crypto Markets?

Who Is Michael Saylor?

What Is Cryptocurrency Mining and How Does It Work?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

🗞️ In The News
Bitcoin makes a new ATH above $111,900.Trump threatens new tariffs on the European Union and Apple, reigniting trade fears.The US Senate officially passes the “Genius Act” crypto stablecoin bill.Coinbase was hit with a wave of lawsuits over customer data breaches.Javier Milei shuts down Libra meme coin investigation.Bitcoin enthusiasts celebrated the 15th Bitcoin Pizza Day on May 22.

📖 Binance Academy Knowledge
Bitcoin PizzaWhat Are Meme Coins?What Is Short Selling?What Is the Haedal Protocol (HAEDAL)?What Is Huma Finance (HUMA)?What Is World Liberty Financial USD (USD1)?

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Key Takeaways

In March 2025, World Liberty Financial Inc. (WLFI) introduced USD1 as a new stablecoin pegged to the US dollar. 

World Liberty Financial Inc. (WLFI) is a decentralized finance (DeFi) platform inspired by President Donald J. Trump.

Designed to appeal to both institutional and retail investors, USD1 aims to bridge traditional finance with DeFi by offering a stable digital asset backed by reliable reserves.

What Is USD1?

USD1 is a fiat-backed stablecoin designed to maintain a 1:1 peg with the US dollar, meaning each USD1 token is intended to be redeemable for one US dollar. Launched by World Liberty Financial Inc., USD1 is presented as an "institutional-ready" stablecoin designed to offer seamless and secure cross-border transactions for institutions, investors, and retail users. The project operates on the Ethereum and BNB Chain networks, with plans to expand to additional blockchains in the future.

What Is World Liberty Financial (WLFI)?

World Liberty Financial Inc. (WLFI) is a decentralized finance (DeFi) protocol and governance platform inspired by President Donald J. Trump. As the issuer of USD1, WLFI oversees its operations, reserve management, and strategic partnerships, positioning USD1 as a key component of its mission to bridge traditional finance with DeFi.

How USD1 Works

The stablecoin’s reserves are fully backed by a portfolio of short-term US government treasuries, US dollar deposits, and other cash equivalents. These assets are custodied by BitGo, a prominent digital asset security and custody provider known for serving thousands of institutional clients globally. BitGo Prime, the company’s prime brokerage service, also supports USD1 by offering deep liquidity and trading capabilities within a regulated framework.

Fiat-backed stability mechanism

USD1 operates as a fiat-backed stablecoin, a category that includes established players like Tether (USDT) and Circle (USDC). This model relies on a reserve of real-world assets to maintain the token’s value as close as possible to $1. 

For USD1, these assets include short-term US government treasuries, cash deposits, and cash equivalents, which provide a conservative foundation to ensure stability. Unlike algorithmic stablecoins, which use complex mechanisms to maintain their peg, USD1’s design prioritizes simplicity to minimize risk.

The 1:1 peg allows users to redeem USD1 tokens for US dollars directly with the issuer, creating an arbitrage opportunity that helps maintain price stability. For example, if USD1’s market value dips below $1, traders can purchase it at a discount and redeem it for $1, profiting from the difference. This mechanism mirrors the operational model of USDC and USDT, ensuring the token’s value remains closely aligned with the US dollar.

Blockchain integration and custody

USD1 is initially minted on Ethereum and BNB Chain. These platforms enable fast, secure, and transparent transactions, making USD1 accessible to a broad range of users. WLFI has indicated plans to expand to other blockchains, potentially increasing the token’s interoperability and reach within the DeFi ecosystem.

BitGo, the custodian for USD1’s reserves, plays an important role in ensuring security. As a leader in digital asset custody, BitGo provides insured and regulated storage for the stablecoin’s backing assets.

Market Performance

Since its launch in March 2025, USD1 has achieved a market capitalization of $2.1 billion within just over a month. This rapid rise has positioned USD1 as the fastest-growing stablecoin in history, largely driven by a significant institutional deal.

At the Token2049 conference in Dubai in April 2025, WLFI co-founder Zach Witkoff announced that USD1 was selected to facilitate a $2 billion investment deal between Abu Dhabi’s MGX and Binance. This exclusivity deal underscored USD1’s institutional appeal and contributed to its market cap surge.

Things to Keep in Mind

Lack of reserve transparency

Established stablecoins like USDC and USDT provide regular attestations detailing their assets and liabilities. As of May 2025, there is no publicly available information about USD1’s reserve composition. WLFI has committed to regular third-party audits to verify that USD1 is 100% backed, but the absence of current reserve breakdowns may raise concerns for some investors.

Political associations

USD1’s connection to President Donald J. Trump and his family, through WLFI, may create perceptions of political partisanship. While WLFI emphasizes that USD1’s success is tied to the broader US economy rather than individual political figures, this association could impact adoption, particularly among users or institutions wary of perceived political bias.

USD1 in the Stablecoin Ecosystem

USD1 enters a competitive stablecoin market dominated by USDT and USDC, which together hold significant market share due to their established track records and widespread retail use. USD1 differentiates itself by targeting institutional investors, leveraging high-profile deals like the Binance-MGX partnership to build credibility. Its conservative reserve strategy, avoiding complex yield-generating mechanisms, aligns with institutional demands for stability and security.

USD1 Listing on Binance

On May 22, 2025, Binance announced the listing of USD1. Soon after the announcement, the USD1 stablecoin was listed on the Binance Spot market and made available for trading against USDT.

Closing Thoughts

USD1, launched by World Liberty Financial in March 2025, is a fiat-backed stablecoin designed to maintain a 1:1 peg with the US dollar. Backed by short-term US government treasuries and custodied by BitGo, it operates on Ethereum and BNB Smart Chain, with plans to expand to other chains in the near future.

Unlike USDT and USDC, which have strong retail adoption, USD1 appears to prioritize institutional use cases. The Binance-MGX deal highlights WLFI’s strategy of securing high-profile partnerships to drive adoption among major financial players.

Further Reading

What Is a Stablecoin?

What Is Tether (USDT)?

What Is the Official Trump Meme Coin (TRUMP)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Huma Finance is a decentralized protocol that unlocks real-world DeFi by leveraging income and receivables as collateral.

The platform supports lending and borrowing through a novel PayFi model, enabling access to credit without traditional collateral.

HUMA is the utility and governance token powering the Huma Finance ecosystem.

Huma facilitates programmable payments, on-chain underwriting, and real-time liquidity for institutions and developers.

Introduction

Not everyone has crypto or assets to use as collateral—but almost everyone has income. Huma Finance is building a new kind of decentralized finance (DeFi), one where your paycheck, invoices, or future payments can help you access credit.

By turning income into usable collateral, Huma opens financial doors for people and businesses who might otherwise be left out. It's a practical, forward-thinking approach that brings real-world value to the blockchain space.

What Is Huma Finance?

Huma Finance is a decentralized protocol designed to bring real-world income and receivables onto the blockchain. It enables users to secure credit based on projected income rather than crypto assets, which is particularly beneficial for individuals, small businesses, and emerging market users.

Key pillars of Huma's architecture include:

Income-based collateralization: Borrowers can use future payments such as payroll, invoices, or remittances as collateral.

On-chain underwriting: The protocol allows issuers to assess credit risk using on-chain and off-chain data, ensuring transparency and automation.

Programmable payments: Lending agreements and payment flows are encoded into smart contracts, enabling efficient and secure settlement.

How Does Huma Finance Work?

Huma’s PayFi model creates a modular ecosystem with four main participants: credit issuers, receivables originators, liquidity providers, and borrowers. Credit issuers assess creditworthiness and offer financing. Receivables originators convert future income into on-chain assets that serve as collateral. Liquidity providers supply the funds, and borrowers receive credit in return.

These roles interact through smart contracts that automate underwriting, disbursement, and repayment. The system reduces reliance on traditional intermediaries and enhances accessibility for underbanked populations.

Pros & Cons of Huma Finance

Pros

Expands DeFi access without needing crypto collateral.

Bridges blockchain and real-world finance.

Enables automation through smart contracts.

Cons

Relies on income verification.

Regulatory uncertainties.

Requires trust in data accuracy and integration.

Real World Use Cases

Huma Finance can be applied in various contexts. In emerging markets, cross-border lending based on remittances can offer affordable credit options. Small businesses can convert unpaid invoices into liquidity, helping them manage cash flow and grow operations. Employees may access early wage advances through tokenized payrolls, while healthcare or education services can be delivered through deferred payment models enabled by Huma’s infrastructure.

These examples show the protocol’s versatility and its potential to support a broad range of financial scenarios where traditional credit systems fall short.

HUMA on Binance Launchpool

On May 22, 2025, Binance announced Huma Finance (HUMA) as the 70th project on Binance Launchpool.

Users who stake BNB, FDUSD, and USDC from May 23 to May 25, 2025, are eligible to receive HUMA airdrops. A total of 250 million HUMA tokens were allocated for Launchpool rewards, representing 2.5% of the total supply.

Additional distributions include 50 million HUMA allocated to marketing campaigns immediately after listing and another 40 million HUMA set aside for marketing campaigns three months post-listing.

HUMA was listed with the Seed Tag applied and will be available for trading from May 26 at 13:00 (UTC) against the USDT, USDC, BNB, FDUSD, and TRY pairs.

HUMA is supported on both BNB Smart Chain and Solana.

Closing Thoughts

Huma Finance takes a familiar concept—getting paid—and uses it to reshape how people access credit. By tapping into future income instead of relying on traditional collateral, Huma makes DeFi more relevant and accessible to everyday users.

Further Reading

What Are Real World Assets (RWA)?

How Does Tokenization Work?

What Are Smart Contracts?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Haedal is a liquid staking protocol built on the Sui network. It allows users to stake their SUI tokens and contribute to the governance and decentralization of the Sui blockchain.

After staking their assets, users receive liquid staking tokens (LST) called haSUI, which they can use in other DeFi services and activities.

Haedal merges native liquid staking and yield strategies with an intuitive user experience, making it an important pillar of the Sui DeFi ecosystem.

Introduction

The Haedal Protocol is a decentralized finance (DeFi) platform built on the Sui blockchain. It focuses on liquid staking and liquidity provision through a market maker model called Haedal Market Maker (HMM).

By blending staking with DeFi, Haedal aims to optimize capital use and yield potential for users. Let’s take a closer look at the Haedal Protocol, its structure, liquid staking system, the Haedal Market Maker, and their roles within the Sui ecosystem.

What Is Haedal?

The Haedal Protocol is a liquid staking platform designed to support the Sui blockchain, a layer 1 blockchain known for its scalability and low transaction costs.

Haedal allows users to stake SUI tokens, the native cryptocurrency of the Sui network, to help secure the blockchain. In return, they receive a liquid staking token (LST) called haSUI. This token enables users to effectively unlock their liquidity and participate in DeFi activities without sacrificing staking rewards, addressing the trade-offs found in traditional staking models.

Liquid Staking with Haedal

How liquid staking works

Liquid staking allows users to stake assets while retaining liquidity, unlike traditional staking, where assets are locked. In Haedal, users stake SUI tokens to support Sui’s validator network, which secures the blockchain. In return, they receive haSUI, a yield-bearing token that represents their staked SUI and accrues validator rewards.

Haedal offers two staking modes:

Automated Staking: The protocol selects efficient validators, simplifying the process for users with a one-click experience.

Manual Staking: Users choose specific validators based on their annual percentage yield (APY), offering more control.

Once staked, haSUI is minted and deposited into the user’s wallet.

Utility of haSUI

The haSUI token is designed to integrate seamlessly into Sui’s DeFi ecosystem. It can be used in:

Decentralized exchanges (DEXs): For trading or providing liquidity in pools (e.g., haSUI/SUI on Cetus DEX).

Lending protocols: As collateral or for borrowing.

NFT marketplaces: For purchasing or trading NFTs.

Stablecoin protocols: For stablecoin-related DeFi activities.

This flexibility allows users to earn staking rewards while participating in yield-generating DeFi strategies, enhancing capital efficiency.

The Haedal Market Maker (HMM)

The Haedal Market Maker (HMM) is an automated market maker (AMM) designed to optimize liquidity for haSUI and other assets on Sui. Unlike traditional AMMs, HMM uses protocol-owned liquidity, initially funded by Haedal, to provide efficient trading and enhance yields for haSUI holders. 

As of May 2025, Haedal is among the largest AMM Sui by daily trading volume, with over $900 million in total volume and a TVL of roughly $1 million, according to DefiLlama. HMM charges a 0.04% trading fee, with 50% allocated to incentives, such as boosting haSUI yields.

Key mechanisms of HMM

1. Dynamic liquidity concentration: Unlike traditional AMMs that distribute liquidity across an infinite price range using the constant-product formula (x * y = k), HMM concentrates liquidity within specific price ranges likely to see trading activity. It uses a non-linear leverage factor to adjust liquidity dynamically, aligning with real market conditions to minimize slippage and optimize capital use.

2. Oracle-based Pricing: HMM integrates high-frequency oracle price feeds (e.g., Pyth Network) to align liquidity with real-time market prices. This reduces impermanent loss risk for liquidity providers and can even generate “impermanent profit” by capitalizing on price movements, complementing other AMMs and order books on Sui.

3. Inventory management: HMM maintains pool balance by adjusting asset prices dynamically. If one asset in a pool (e.g., SUI in a SUI-USDC pair) depletes, HMM increases its price to encourage selling and discourage buying, which helps restore the equilibrium.

Capital efficiency and risk management

HMM leverages Sui’s high transaction-per-second (TPS) capacity to adjust liquidity in volatile pairs, minimizing drawdowns caused by market fluctuations. Additionally, HMM is resistant to Miner Extractable Value (MEV) attacks, such as front-running and sandwich attacks, ensuring stable yields for users.

Funding and profit distribution

HMM operates using Haedal’s protocol-owned liquidity, eliminating the need for external liquidity providers in the early stages of the protocol. According to the official documentation, the initial funds will be provided by the Haedal team, with profits reinvested continuously to scale liquidity:

40% to the haSUI Treasury (in SUI), enhancing haSUI’s APR.

50% for HAEDAL token buybacks, distributed as rewards to veHAEDAL stakers.

10% to Haedal’s protocol treasury for long-term sustainability.

HAEDAL and veHAEDAL

HAEDAL is the native governance token of the Haedal Protocol. It has a total supply of 1 billion units and a 7-year release schedule.

Haedal introduced veHAEDAL as a vote-escrowed token for governance and staking rewards. Users can lock HAEDAL tokens for 1 to 52 weeks to receive veHAEDAL. Longer lockups yield more veHAEDAL. Benefits include:

Weekly staking rewards.

Amplified yields in Haedal’s farm modules.

Voting power in Haedal DAO proposals.

HAEDAL on Binance HODLer Airdrops

On May 21, 2025, Binance announced HAEDAL as the 19th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn and/or On-Chain Yields products from May 10 to 13 were eligible to receive HAEDAL airdrops. A total of 30 million HAEDAL tokens were allocated to the program, accounting for 3% of the total token supply.

HAEDAL was listed with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

The Haedal Protocol offers a blend of liquid staking and liquidity management through its Haedal Market Maker (HMM). By enabling users to stake SUI tokens and receive haSUI, Haedal provides a flexible solution that combines staking rewards with DeFi opportunities, such as trading, lending, and liquidity provision.

Further Reading

What Is Liquid Staking?

What Is Front Running?

What Is Sui (SUI)?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

On May 22, 2010, a programmer named Laszlo Hanyecz paid 10,000 BTC for two pizzas. At today’s prices, that’s over $1 billion—making it the most expensive pizza in history!
Why it matters:
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2️⃣ It proved BTC could function as money—even if it was for pizza.
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💡 Did you know? Bitcoin was worth less than $0.01 when Laszlo made that order. Learn more about Bitcoin and its early history here.

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Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer here for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

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What Is the Satoshi Test and How Does It Help With the Travel Rule?What Is Nexpace (NXPC)?What Is SOFR?What Is Maple Finance (SYRUP)?

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Key Takeaways

The Secured Overnight Financing Rate (SOFR) is an important benchmark for pricing loans, derivatives, and other financial instruments.

As the replacement for the London Interbank Offered Rate (LIBOR), SOFR offers a more transparent alternative that reflects the cost of borrowing in the US financial system.

Following LIBOR’s vulnerabilities, which were exposed during the 2008 financial crisis, SOFR has become the preferred benchmark for US dollar-based financial contracts.

Traded on the Chicago Mercantile Exchange (CME), SOFR futures let investors hedge or speculate on future rates.

What Is SOFR?

SOFR stands for Secured Overnight Financing Rate. It’s basically a number that shows how much it costs to borrow money overnight when the loan is backed by safe US Treasury securities. Think of it like a daily snapshot of borrowing costs in a huge market where banks and other big players swap cash and Treasuries.

Administered by the Federal Reserve Bank of New York in collaboration with the US Treasury’s Office of Financial Research (OFR), SOFR is calculated using actual transactions in the repurchase agreement (repo) market, where institutions borrow and lend cash secured against Treasuries.

How Does SOFR Work?

Unlike LIBOR, which was based on what banks guessed they’d charge each other, SOFR uses real deals from the “repo” market (short for repurchase agreements). 

Published daily at 8 a.m. ET, SOFR reflects data from the prior business day, providing a reliable snapshot of overnight borrowing costs. Its transaction-based nature and the link to a market with over $1 trillion in daily volume made SOFR a more trustworthy benchmark.

By 2023, LIBOR was mostly phased out, and SOFR stepped up as the go-to rate for all sorts of financial stuff, from business loans to sophisticated Wall Street trades.

Where do the numbers come from?

SOFR is built on actual trades in the repo market, where people borrow cash and promise to pay it back the next day, using Treasuries as collateral. The data comes from three main types of deals:

Third-party repos: An intermediary, like a bank, handles the cash and collateral swap.

General Collateral Financing (GCF) repos: These go through a clearinghouse called the Fixed Income Clearing Corporation (FICC).

Bilateral repos: Direct deals between two parties, also cleared by FICC.

The New York Fed takes all these trades, looks at the interest rates, and picks the middle value (called a volume-weighted median) to set SOFR. With over $1 trillion in daily trades, this methodology reflects the tendency of borrowing costs and provides a robust rate that is less susceptible to outliers or market distortions. 

In addition, they also share extra details, like how much money was traded and where the rates fell (like the top and bottom 10%). You can check all this on their website, along with data from previous years.

SOFR Averages and Index

Since SOFR is an overnight rate, it doesn’t work very well for longer-term stuff like loans or bonds. That’s where SOFR Averages and the SOFR Index come in. The averages (for 30, 90, or 180 days) add up daily SOFR rates to give a smoother number for things like mortgages. The SOFR Index, which started in 2018, tracks how SOFR compounds over time, making it easier to figure out payments for complex deals.

The SOFR Averages and the SOFR Index are tools that facilitate the use of SOFR in applications beyond overnight lending, such as adjustable-rate mortgages and corporate debt.

Why SOFR Matters in Finance

Switching from LIBOR to SOFR was a big deal. It took a lot of work to update contracts and systems, but SOFR’s clear approach and alignment with global standards have solidified its position as a trusted benchmark.

SOFR serves as the backbone for a wide range of financial products, including:

Loans: Think business loans or mortgages where the interest rate changes over time.

Derivatives: Fancy contracts like swaps or futures that speculate on interest rates.

Bonds and securities: Things like mortgage-backed securities often use SOFR as a benchmark.

Everyday stuff: Even some adjustable-rate mortgages or student loans use SOFR.

Advantages of SOFR

No fudging: It’s based on real trades, not guesses, so it’s hard to fake.

Stability: With tons of trades every day, it stays steady even when markets get wild.

Safe: Backed by Treasuries, it’s about as low-risk as you can get.

Broad support: Backed by the Alternative Reference Rates Committee (ARRC) and aligned with international standards.

Challenges of SOFR

Overnight nature: It’s just an overnight rate, so you need to do some math for longer deals.

Transition costs: Shifting from LIBOR involved updating contracts and systems, a complex process for market participants.

Volatility: It can spike when markets are stressed, but it’s still safer than other rates.

SOFR Futures

SOFR futures are derivative contracts that allow investors to hedge or speculate on future changes in the SOFR rate. Traded primarily on the Chicago Mercantile Exchange (CME), these futures have become a handy tool for managing interest rate risk or trying to make a profit.

What are SOFR futures?

SOFR futures are standardized contracts based on the expected average SOFR rate over a specific period. In other words, they let you lock in or speculate on what the SOFR rate will be in the future. The two primary types are:

1-Month SOFR Futures: Based on the average SOFR over a month, with a value of $25 per basis point (a tiny rate change).

3-Month SOFR Futures: Based on a three-month average, worth $12.50 per basis point.

These contracts are cash-settled, meaning you don’t swap actual money or Treasuries at the end. They are settled based on the SOFR rate during the contract period, as published by the New York Fed.

How do they work?

Imagine you’re a bank worried that SOFR might shoot up, making your loans more expensive. You could buy SOFR futures to lock in today’s rate, so you’re protected if rates climb. Or, if you’re an investor who thinks rates will drop, you might sell futures to cash in when they do.

The futures are priced as 100 minus the expected SOFR rate, and their value shifts as people’s predictions change. The CME handles daily updates to keep everything fair, so you’re not stuck if the market moves against you.

Why use SOFR futures?

Risk management: Financial institutions use SOFR futures to hedge exposure to SOFR-based loans, swaps, or other instruments.

Market insight: Futures prices reflect market expectations of future SOFR rates, providing valuable information for monetary policy analysis.

Term rate development: SOFR futures data contribute to the creation of forward-looking SOFR term rates, which are used in some LIBOR-replacement contracts.

Comparing SOFR to Other Benchmarks

SOFR isn’t the only rate out there, so let’s see how it compares:

Vs. LIBOR: SOFR uses real trades and is very safe, while LIBOR was based on estimates and is riskier. LIBOR had rates for months ahead; SOFR needs some math for that.

Vs. Federal Funds Rate: SOFR covers more repo deals, while the federal funds rate is about unsecured bank lending. SOFR is broader and safer.

Vs. Global Rates: Like the Euro Short-Term Rate (€STR) or the Sterling Overnight Index Average (SONIA), SOFR is a risk-free rate, but it is unique in its reliance on the US repo market.

These differences make SOFR perfect for dollar-based deals, especially since it’s tied to secure Treasuries.

Does SOFR Impact Crypto Markets?

SOFR doesn’t directly move the needle in crypto markets, but it can still give some insights into market sentiment. As a benchmark tied to overnight borrowing costs, SOFR reflects what’s happening with interest rates and liquidity in traditional finance. 

When SOFR climbs, it often means borrowing is getting more expensive, which can make investors think twice about riskier assets like cryptocurrencies. For example, if the Federal Reserve tightens policy and SOFR spikes, crypto prices might dip as people shift to safer assets like bonds.

On the flip side, a low SOFR may relate to higher demand for speculative assets like crypto. SOFR futures, traded on the CME, also play a role by showing what big players expect from future rates, which could indirectly affect broader market sentiment and crypto trading.

Closing Thoughts

SOFR, the Secured Overnight Financing Rate, is a game-changer in finance. It’s a transparent, reliable number that replaced LIBOR, guiding everything from loans to derivatives. SOFR futures add a layer of flexibility, letting people hedge risks or speculate on where rates are going. With its roots in real trades and a safety net of Treasuries, SOFT will likely be around for a long time.

For those seeking to explore SOFR further, resources from the New York Fed and CME offer detailed data and market insights.

Further Reading

What Is a Yield Curve and How to Use It? 

What Are Bonds and How Do They Work?

Interest Rates Explained

The 2008 Financial Crisis Explained

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Nexpace, developed by a Nexon subsidiary, is a blockchain-based project that transforms the MapleStory franchise into a decentralized gaming ecosystem called the MapleStory Universe.

By integrating blockchain technology and non-fungible tokens (NFTs), Nexpace allows players to own and trade in-game assets, moving away from the publisher-controlled model of traditional games.

Nexpace features a dual-token system with NXPC and NESO. NXPC, the primary utility token, handles transaction fees, NFT trading, and acts as a reserve for the NESO token, which players use inside the game. 

Introduction

Nexpace is a blockchain project developed by a subsidiary of Nexon, a gaming company known for the MapleStory franchise. The Nexpace project aims to create a decentralized, player-driven gaming ecosystem by integrating blockchain technology and non-fungible tokens (NFTs) into the MapleStory Universe. 

The NXPC token is a utility token that powers transactions, incentivizes community participation, and supports the creation and trading of digital assets within the MapleStory Universe. Launched with a vision to expand the MapleStory intellectual property (IP), Nexpace wants to redefine how players and creators interact in a virtual gaming multiverse.

What Is Nexpace?

Nexpace serves as the backbone of the MapleStory Universe, a digital ecosystem where players, creators, and developers interact through a shared economy powered by the NXPC token. Through the use of blockchain, Nexpace enables a collaborative environment where creators can contribute content, such as cosmetic items, plugins, and tools.

How Does Nexpace Work?

Unlike traditional gaming models where assets are controlled by the game publisher, Nexpace empowers users to own, trade, and monetize digital assets, including characters, equipment, and consumables, represented as NFTs.

Nexpace operates as a layered ecosystem that combines blockchain infrastructure, tokenized assets, and a dual-token system to facilitate interactions within the MapleStory Universe. As of May 2025, the protocol is built on two blockchain networks: BNB Chain and Avalanche C-Chain.

The MapleStory Universe includes the MapleStory N PC game and many other products and services, such as the MSU Marketplace, Swap&Warp, MSU Explorer, and more.

Source: docs.nexpace.io

MapleStory N

Source: docs.maplestoryn.io

MapleStory N is a new PC MMORPG that keeps the fun, old-school 2D side-scrolling vibe of MapleStory but adds some cool blockchain twists and new ways to play. It’s a big piece of the MapleStory Universe, offering players a blend of nostalgia and innovation.

The game has a setup where key items, like characters or gear, are NFTs or tokens with limited amounts, so they’re often rare and special. You can swap these items using NXPC, the main token of the ecosystem, which connects your in-game stuff to the bigger blockchain world and racks up your “RX” points (Reward Experience that represents your achievements).

MapleStory N introduces dynamic rewards that adjust based on player activity. For example, busy hunting spots will give you less loot, while quieter areas have boosted rewards, pushing players to explore new places.

Additionally, a dynamic pricing system applies real-world economic principles to item upgrades—high-demand items cost more to enhance, while less popular ones stay affordable, adding strategic depth as players have to balance cost and value.

Blockchain infrastructure

The Nexpace protocol leverages the BNB Chain for its high throughput and low transaction costs, making it suitable for in-game purchases and NFT trading. The Avalanche C-Chain complements this by offering fast finality and compatibility with Ethereum-based tools. The openness of blockchain networks enables transparent tracking of asset ownership and transaction history, which helps build and maintain trust in the ecosystem.

NXPC token

The NXPC token is the primary utility token of the MapleStory Universe. It serves multiple functions, such as:

Transaction fees: NXPC is used to pay for transaction fees on the Layer 1 network.

Trading: Players use NXPC to trade NFT item baskets in the marketplace, which may include in-game assets like equipment or cosmetic items.

Reserve asset: NXPC acts as a reserve for the in-game NESO token, keeping the economy stable.

NXPC has a total supply of 1 billion tokens, with an initial circulating supply of 169,040,000 (16.9%) as of its listing on Binance on May 15, 2025.

NESO token

NESO is the in-game currency for MapleStory N, which is an MMORPG game of the MapleStory Universe. NESO is tied to NXPC at a steady exchange rate, so players can swap NXPC for NESO to buy stuff like NFT characters, gear, or upgrades in the game. It’s designed for in-game use with simple mechanics, letting them focus on gaming without the complexities of blockchain.

MSU Marketplace

Source: msu.io/marketplace

The Nexpace ecosystem includes a marketplace where players can trade NFTs representing in-game assets. These NFTs are categorized by utility and rarity, contributing to a player’s RX or Reward Experience (which represents their achievements).

The marketplace supports the trading of item baskets, which are collections of NFTs, using NXPC as the medium of exchange. The protocol carefully manages item supply to maintain scarcity and value, with periodic updates to keep the economy dynamic.

Community and creator participation

Nexpace emphasizes community engagement by rewarding both players and creators. Players earn RX through gameplay, such as acquiring rare items or completing challenges, which enhances their status in the ecosystem. 

Creators, including artists, developers, and builders, can contribute content like cosmetic NFTs, plugins, or tools, earning NXPC as rewards. This incentivizes innovation and ensures the ecosystem can continue to evolve through user-generated content.

Key Features of Nexpace

In summary, Nexpace offers multiple features that distinguish it from traditional gaming platforms:

Asset ownership: Players have true ownership of in-game assets as NFTs, which can be traded or monetized outside the game.

Decentralized economy: The dual-token system (NXPC and NESO) helps create a more balanced economy where both players and creators share value.

Scalable infrastructure: Integration with BNB Chain and Avalanche C-Chain ensures efficient and secure transactions.

Community-driven content: Creators are empowered to build and monetize content, making the gaming ecosystem more dynamic and collaborative.

Interoperability: In the future, the MapleStory Universe plans to link multiple intellectual properties (IPs), creating a multiverse of interconnected experiences.

Nexpace (NXPC) on Binance HODLer Airdrops

On May 15, 2025, Binance announced Nexpace (NXPC) as the 18th project on the Binance HODLer Airdrops. Users who subscribed their BNB to Simple Earn or On-Chain Yields products from May 6 to 9 are eligible to receive the airdrops. A total of 30 million NXPC tokens were allocated to the program, accounting for 3% of the total token supply.

NXPC was listed for trading on Binance with the Seed Tag applied, allowing for trading against the USDT, USDC, BNB, FDUSD, and TRY pairs.

Closing Thoughts

Nexpace is a bold step forward for MapleStory, blending blockchain with gaming to create a player-owned, community-focused universe. With NXPC and NESO tokens, an NFT marketplace, and a setup that rewards creativity, Nexpace is offering a dynamic framework for players and creators to engage, trade, and have fun.

Further Reading

What Is An NFT?

What Are NFT Games and How Do They Work?

What Is GameFi and How Does It Work?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

Maple Finance is a lending marketplace built on blockchain technology. It connects businesses needing loans with investors looking to earn returns.

Launched in 2019, Maple Finance aims to make lending simpler and more accessible through decentralized finance (DeFi).

Unlike many DeFi platforms that demand heavy collateral, Maple enables undercollateralized loans by leveraging the reputation of borrowers. Simply put, it focuses on loans that require less upfront security.

What Is Maple Finance?

Maple Finance is a lending marketplace built on blockchain technology, primarily Ethereum. The marketplace can serve institutions (like crypto firms or financial entities) and accredited individual investors.

The platform tackles a common DeFi issue: the need for borrowers to lock up more assets than they borrow. By using borrowers’ reputations to secure loans, Maple offers a more flexible approach, blending traditional financial checks with blockchain’s transparency.

How Does Maple Finance Work?

Maple Finance acts like a bridge between those who want to lend money and those who need to borrow it. Lenders pool their funds in what’s called Liquidity Pools, which are overseen by Pool Delegates. These pools then fund loans to businesses, with blockchain ensuring everything is secure and trackable.

Liquidity pools and lending

Liquidity Pools are the backbone of Maple’s lending system. Lenders, including institutions and accredited individuals, deposit digital assets (such as USDC or other stablecoins) into these pools to earn interest.

Pool Delegates manage the pools, deciding who gets loans and on what terms. Lenders gain access to a range of high-quality borrowers, earning steady returns from short-term, overcollateralized loans.

You don’t need to own Maple’s token, SYRUP, to lend. Through the Maple WebApp, lenders can add funds, keep an eye on their investments, and withdraw money following the guidelines. This setup is designed to prioritize reliable returns and easy access to funds, with all loans backed by collateral to reduce risks.

Borrowing money

Borrowers on Maple are mainly businesses, such as crypto companies or financial institutions, looking for flexible financing. To get a loan, they sign up on the Maple WebApp and go through a review process run by Pool Delegates. This involves checking their financial health and reputation, allowing Maple to offer loans with less collateral than typical DeFi platforms.

Loans are usually fixed-rate, short-term, and backed by some collateral, which lowers the chance of sudden liquidations. Borrowers can benefit from flexible terms and access to on-chain financing, which tends to be more efficient than traditional banking services. The platform’s openness ensures everyone understands the loan terms upfront.

The role of Pool Delegates

Pool Delegates are the ones who keep things running smoothly. They evaluate borrowers, set loan conditions, and manage the pools, acting like credit managers. Their work is to ensure that loans are secure and aligned with lenders’ interests. They are responsible for managing risk (e.g., handling defaults, margin calls, and liquidations) and earn fees for their work.

Pool Delegates are selected for their expertise in credit underwriting, making them a key component of the platform’s operations. However, Maple’s official documentation mentions potential challenges in aligning third-party delegates with the platform’s goals, which suggests that there is still room for improvement.

Key Features of Maple Finance

Maple Finance has several features that set it apart in the DeFi space:

Less collateral needed: By leveraging borrowers’ reputations, Maple reduces collateral requirements, making financing more capital-efficient for institutions.

Professional standards: It combines blockchain efficiency with rigorous financial checks, appealing to institutional players.

Blockchain transparency: Running on Ethereum and other networks, Maple uses smart contracts for automation, transparency, and real-time monitoring.

Product offerings: Products like the Cash Management Pool, which invests in US Treasury bills, or Maple Direct for custom loans, can cater to different user needs.

Partnerships: Maple Finance made collaborations with entities like Circle (for USDC adoption) and Ethena Labs (for real-world asset scaling).

SYRUP Token

Maple’s operations are guided by its token, SYRUP, which replaced an earlier token called MPL in 2023 after a community vote. SYRUP holders can participate in share fee revenues, help make decisions about the platform governance, and stake tokens to help protect liquidity pools against losses.

SYRUP on Binance

On May 6, 2025, Binance announced the listing of Maple Finance (SYRUP) with the Seed Tag applied. The SYRUP token was made available for trading against USDT and USDC trading pairs on the same day.

SYRUP smart contracts

Ethereum: 0x643C4E15d7d62Ad0aBeC4a9BD4b001aA3Ef52d66

Base: 0x688AEe022AA544f150678B8E5720b6b96a9E9a2F

Maple Finance Security

Security is a big focus for Maple. Its smart contracts, which power the platform, are open-source on GitHub, with 76 repositories detailing their code. The platform passed multiple audits (three in December 2022 and two in June 2023), allowing developers to fix issues before going live.

Things to Keep in Mind

As with other DeFi projects, using the Maple Finance protocol and services carries risks, like losing assets due to market swings or smart contract vulnerabilities. In addition, relying on Pool Delegates can lead to coordination issues, as noted in the project’s official documentation. It’s important to do your own research and understand the products well before taking risks.

Closing Thoughts

Maple Finance is a decentralized platform that makes lending and borrowing more accessible for businesses and investors. By offering loans with lower collateral requirements, using the SYRUP token for community governance, and maintaining high compliance standards, the project experienced significant growth in the DeFi space. For those exploring institutional DeFi, Maple Finance can offer an interesting blockchain-driven approach to capital markets.

Further Reading

What Is USDC?

What Is Ethena (ENA)?

What Is Decentralized Finance (DeFi)?

Collateral

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.

Key Takeaways

The Travel Rule is a regulatory standard that requires crypto platforms to collect and share certain details about crypto transactions. The goal is to comply with international anti-money laundering regulations.

Binance users may be required to verify the ownership of wallet addresses before sending crypto to (or receiving crypto from) certain platforms. 

The Satoshi Test is a verification method that simplifies Travel Rule compliance through a small cryptocurrency transfer. Once completed, it removes the need to repeatedly verify a wallet address for every deposit or withdrawal.

Introduction

The Travel Rule is an international regulatory requirement that affects how crypto is sent between platforms. It obligates crypto service providers to share specific transaction details to prevent money laundering and terrorism financing. While the rule promotes financial security, it can add complexity to everyday crypto transactions.

The Satoshi Test is a feature that simplifies how users comply with the Travel Rule when making cryptocurrency transactions. By allowing a small test transfer of BTC or other crypto to confirm recipient wallet ownership, the Satoshi Test makes the user experience more efficient and secure, especially when used in combination with Binance’s Address Management feature.

What Is the Travel Rule?

The Travel Rule, officially known as the Financial Action Task Force (FATF) Recommendation 16, is a global standard that applies to Virtual Asset Service Providers (VASPs). It mandates that when users transfer crypto assets above a certain threshold between VASPs, both the sender’s and recipient’s information must be collected and exchanged.

This includes:

Sender’s name and wallet address.

Recipient’s name and wallet address.

Account numbers or unique transaction identifiers.

As a result, when users attempt to send funds from Binance to another VASP that also complies with the Travel Rule, the platform must verify the recipient’s address — often requiring manual steps, delays, or address verifications.

What Is the Satoshi Test?

The Satoshi Test is a feature designed to simplify the address verification process when sending crypto assets to another platform that is compliant to the Travel Rule. It allows users to verify a recipient’s wallet by first sending a small amount of cryptocurrency to ensure the recipient controls the wallet.

How it works

Initiate a withdrawal: When a user attempts to withdraw crypto to an unverified address, the system may prompt them to complete a Satoshi Test.

Send a small test amount: The user sends a very small amount of crypto (e.g., 0.00001 BTC) to the recipient.

Recipient confirms receipt: The recipient confirms the amount and the transaction ID on their platform.

Address verified: Once confirmed, the full withdrawal can proceed, and the address is marked as verified for future use.

This verification method is especially useful for first-time transfers and avoids the need for manual document uploads or back-and-forth verifications.

Why the Satoshi Test Matters

The Satoshi Test significantly improves user experience by:

Reducing friction: Simplifies the process of verifying recipient wallets.

Enhancing security: Ensures users are sending crypto to the correct wallet address.

Faster transactions: Once an address is verified, it’s much faster and easier for users to make new transfers.

Improving compliance: Helps Binance and its users stay aligned with regulatory requirements and expectations.

The Address Management Feature on Binance

The Address Management is a tool that allows Binance users to store and label wallet addresses, making future withdrawals much easier. Whitelisting addresses can also provide more security, reducing the risks of sending to the wrong recipient or typing the wrong address.

Depending on the case, Binance users can use the Address Management feature to verify wallet addresses via the Satoshi Test.

How to add a new address to the Address Management list

Log in to your Binance account and go to the Address Management page. You can also find it by navigating to [Account] → [Security] → [Withdrawal Whitelist].

Click [Add Address] to add a new withdrawal wallet address.

Add a label name to the address and fill in the information.

Depending on the case, you might be required to verify the address.

 Follow the instructions and complete the Satoshi Test (if requested).

For more information, please refer to the Binance FAQ.

Use Case Example

Imagine a user wants to send BTC from Binance to another exchange for the first time. Under Travel Rule compliance, the platform needs to verify the recipient’s wallet. Instead of going through a lengthy process, the user opts for the Satoshi Test, sending a tiny amount of BTC. Once the recipient confirms, the user completes the full transfer and adds the address to their Address Management for future use. The process will be seamless the next time they send BTC to the same address.

Closing Thoughts

The Satoshi Test is a practical and efficient solution that allows Binance users to comply with the Travel Rule and other international AML regulations. By verifying wallet ownership through a small crypto transfer, the Satoshi Test can help reduce delays while providing more convenience and security.

Further Reading

What Is Satoshi Test and Travel Rule Address Book Feature?

What Is Anti-Money Laundering (AML)?

Who Is Satoshi Nakamoto?

Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.