PANews reported on November 26 that according to the official blog, Binance announced the launch of BFUSD, a rewarding margin asset created specifically for futures users. The asset is designed to support users' futures trading while providing additional rewards. BFUSD is only available on Binance. Holding BFUSD can earn daily USDT rewards, and increase its rewards by trading USDⓈ-M futures with BFUSD as margin - all funds are provided by Binance's delta hedging and ETH staking strategies. BFUSD can be converted into a USD stablecoin.
To protect users from negative funding rates, Binance has set up a reserve fund with an initial capital of 1 million USDT. The fund serves as a buffer to deal with adverse market conditions, such as negative funding rates. The reserve fund is continuously replenished with a portion of BFUSD's daily rewards, grows proportionally with BFUSD's investment and hedging strategies, and ensures protection from negative funding rates. Currently USDT is the only supported currency for buying BFUSD, and BFUSD purchases will be open at 10:00 Beijing time on November 27. In addition, to use BFUSD as margin, users need to enable multi-asset mode.
