Binance Futures, the largest crypto derivatives exchange by trading volume, today announces exciting new features and enhancements to BFUSD, the first reward-bearing margin asset issued by a crypto exchange. These include USDC support allowing users to purchase and redeem BFUSD with USDC, and a new Pre-Buy and Pre-Redeem reservation system giving users more convenience and flexibility in their trading.
Since its launch in November 2024, there are now 760 million BFUSD in circulation and a current Reserve Fund of 7.2 million USDT, demonstrating growing adoption and user trust in Binance. Binance also recently increased the BFUSD Maximum Holding Limits by 50% for users to meet growing demand.
In CCData’s latest Exchange Benchmark Report published November 2024, Binance Futures took first place among 20 top-tier centralized derivatives exchanges, a testament to how Binance continues to lead the market through user-focused product offerings and liquidity.
Jeff Li, VP of Product at Binance, commented, “Users are at the heart of how Binance designs and builds products for users to support their crypto journey. Crypto is a rapidly evolving industry and innovative products and solutions are key to meeting user needs. BFUSD offers futures users a capital efficient tool that is easy to use, and community response has been encouraging. We are pleased to introduce a range of new features to make BFUSD even more user friendly and we will continue to listen closely to community feedback.”
BFUSD now supports USDC in addition to USDT
Users will be able to purchase BFUSD with USDC in addition to USDT, and they can also choose to redeem USDC or USDT from their BFUSD holdings. All BFUSD rewards will now be routinely issued in USDC, streamlining user earnings into one of the most widely used digital assets.
The additional support of USDC is in-line with Binance’s support of multiple stablecoins to meet liquidity demand and offer users more choices.
Introduction of Pre-Buy and Pre-Redeem Functions
BFUSD is fully collateralized, and users have timely supply and redemption. Binance now introduces Pre-Buy and Pre-Redeem contingency functions, which enable users to reserve their BFUSD purchase and redemption allocations during high demand or limited availability. This underscores how Binance proactively thinks ahead for users, giving users greater confidence in their capital and portfolio management.
Additional Data Metrics Giving Users Increased Transparency
Binance is adding three new sets of data metrics to give users increased transparency on how Binance generates income to fund BFUSD. These are in addition to existing metrics for the Base APY, Boosted APY, BFUSD Supply, System Collateralization % (ratio), and Reserve Fund.
- Protocol APY: A new historical chart will display the Total APY and its components – Derivatives APY (Funding Fee Income) which is generated through Binance’s hedging strategies to collect consistent returns from futures markets and Earn APY (Staking Income) which is earned from staking assets such as WBETH.
- Solvency Metrics: New charts for Total BFUSD Supply Trend and System Collateralized Trend, which tracks the relationship between BFUSD supply and Binance’s holdings in the BFUSD Collateral Pool, and reflects the health of BFUSD, giving users confidence that the asset is fully backed. Users can also select timeframes of 7 days, 30 days or 180 days for longer data and trend analysis.
- Transparency Insights: A detailed summary of the total value of all assets and positions supporting BFUSD Collateral Pool, giving users deeper insights into how the active futures positions Binance uses for hedging and to generate funding fee income.
Binance has extended until 31 March 2025 the Zero Purchase Fees Promotion for BFUSD where all users can enjoy zero fees on purchases of BFUSD. Eligible users who purchase BFUSD for the first time can also register for an ongoing promotion and enjoy up to 100% Bonus APY rewards which ends 29 January 2025.
Disclaimer: You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. The reward rates (including the Base Rate and the Boosted Rate) are calculated daily, and are expressed as an annualised percentage yield (APY) for illustrative purposes only. Each reward rate is not representative of the performance of BFUSD for any period other than the particular date specified and is not indicative of future results. The reward rates are likely to fluctuate day-to-day. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. BFUSD cannot be withdrawn or used for any purpose other than as margin in a Binance Futures Account. Redemption restrictions may apply, which may affect your ability to redeem BFUSD for a supported USD stablecoin. This material should not be construed as financial advice. For more information, see our Terms of Use, the BFUSD Terms and our Risk Warning. To learn more about how to protect yourself, visit our Responsible Trading page.
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