George Miller
Binance has launched a new stablecoin named BFUSD, which offers an impressive estimated annual percentage yield (APY) of 19.55%. This new coin, with a total supply of 20 million BFUSD, aims to provide users with easy earnings without the complications of staking or locking their funds.
Users can keep their BFUSD in their UM wallets and earn daily rewards through airdrops. The interest is based on the lowest hourly balance of BFUSD in the users’ accounts, which is determined through hourly snapshots. These rewards are credited daily to UM Futures accounts and can be seen in the Reward History section.
Highlights of Binance’s BFUSD
1. Earning made easy: Users can effortlessly gain daily rewards simply by holding BFUSD in their accounts.
2. Attractive APY: The 19.55% APY is notably higher than many stablecoins, making this a compelling choice for investors.
3. Collateral flexibility: BFUSD can be used as collateral with a 100% collateral ratio in Multi-Asset Mode, improving trading opportunities.
Eligibility & Limits
The amount of BFUSD a user can hold is based on their VIP status, with more information available in Binance’s FAQ. BFUSD can only be acquired using USDT moved to the UM wallet. To unlock maximum rewards, users are encouraged to engage in trading activities daily.
Collateral Assurance
The platform maintains a solid collateralization ratio of 105.54%, ensuring the stability of BFUSD. As of November 17, 2024, the reserve fund boasts 1.1 million USDT, enhancing the asset’s reliability.
Limitations
Main Account users enjoy full program benefits, while MiCA and PM users can only redeem BFUSD without receiving rewards.
Market Status of BUSD & BNB
At present, BUSD, Binance’s inaugural stablecoin, maintains a market capitalization of $68.31 million. Following the announcement of BFUSD, Binance Coin (BNB) saw a price increase of 0.70%, reaching $621.94 on November 18.
With the introduction of BFUSD, Binance further cements its status as a frontrunner in the cryptocurrency sector, offering high-yield options for users and supporting the growth of stablecoin utilization.