Binance has introduced a new stablecoin, BFUSD, offering an estimated annual percentage yield (APY) of 19.55%. With a total supply of 20 million BFUSD, this initiative aims to provide users with attractive, hassle-free earnings without the need for staking or locking funds.
Users can hold BFUSD in their UM wallets and receive daily airdrops as rewards. The crypto exchange‘s reward system calculates interest based on the lowest hourly BFUSD balance in users’ accounts, derived from hourly snapshots. Rewards will be distributed daily to UM Futures accounts and can be tracked in the Reward History section.
Key Features of Binance’s BFUSD
1. Hassle-Free Earnings: Binance users earn daily rewards simply by holding BFUSD in their accounts.
2. High APY: The 19.55% APY surpasses yields offered by many other stablecoins, making it a lucrative option for investors.
3. Collateral Usage: BFUSD serves as collateral with a 100% collateral ratio in Multi-Asset Mode, enhancing trading potential.
Participation & Quotas
Each user’s quota for holding BFUSD is determined by their VIP level, with additional details available in Binance’s FAQ. BFUSD can only be purchased using USDT transferred to the UM wallet. To maximize rewards, users must trade daily to activate the reward mechanism.
Reserve Fund and Collateralization
The system maintains a strong collateralization ratio of 105.54%, ensuring BFUSD’s stability. As of November 17, 2024, the reserve fund holds 1.1 million USDT, reinforcing the asset’s credibility.
Limitations
While Main Account users can fully benefit from the program, MiCA and PM users are restricted to redeeming BFUSD without earning rewards.
BUSD & BNB Performance
Currently, the crypto exchange’s first stablecoin, BUSD, stands strong with a $68.31 million market capitalization. Moreover, after the announcement of BFUSD launch, Binance Coin (BNB) price gained 0.70% to $621.94 on Monday, November 18.
With BFUSD, Binance reinforces its position as an innovator in the crypto space. Hence, it’s providing high-yield opportunities for its users while promoting stablecoin adoption.
Also Read: MicroStrategy Buys Another $4.6B Bitcoin, BTC Price to $100K This Week?