Main Takeaways
This is a general announcement. Products and services referred to here may not be available in your region.
When we launched BFUSD in November 2024, our goal was clear: to give futures traders a smarter way to maximize their capital while earning daily rewards. In just a few months, BFUSD has made its mark, with 760 million BFUSD in circulation and a robust Reserve Fund of 7.2 million USDT (as of now), demonstrating strong community support.
New to BFUSD? In short, it’s a reward-bearing margin asset you can purchase with USDT or USDC, use it as margin for Futures trading, and earn daily rewards from Binance’s hedging and staking strategies. With an APY that methodically adjusts to market conditions, BFUSD offers competitive returns — it also features a Reserve Fund to protect traders during bearish periods, ensuring stability and peace of mind.
With our latest updates, BFUSD takes another leap forward. From expanded options like USDC support and a Pre-Buy/Redeem feature to enhanced transparency with new data metrics, these changes are designed to make BFUSD even more versatile and user-friendly. Let’s explore how these updates elevate your trading experience!
USDC Support: More Choices for Greater Flexibility
This month, we’re excited to introduce USDC support for BFUSD. This means you can buy BFUSD using both USDT and USDC, offering greater versatility and even more options to make the most of your trading. Further, all rewards will be routinely issued in USDC, streamlining your earnings in to one of the most widely-used digital assets. This applies to all BFUSD rewards, regardless of whether the BFUSD was purchased with USDT or USDC.
What’s in it for you?
By supporting multiple stablecoins, we’re giving you the freedom to align BFUSD with your personal trading preferences and portfolio strategy. Whether you’re a USDT loyalist or a USDC enthusiast, this update ensures that BFUSD fits seamlessly into your financial plans, making it even easier to trade, earn, and grow on Binance.
Pre-Buy and Pre-Redeem: Plan Ahead With Confidence
The new Pre-Buy and Pre-Redeem features are designed to provide even greater convenience and control for BFUSD users. These reservation systems ensure smooth transactions, offering a proactive solution for future needs.
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Pre-Buy: While BFUSD supply has consistently met demand, this feature allows you to reserve BFUSD in advance by depositing USDT or USDC. It’s an added layer of flexibility for users who want to plan ahead and secure their allocation.
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Pre-Redeem: When selling BFUSD back, this feature lets you reserve your stablecoins in advance. It’s designed to streamline the process and give you confidence that your redemption will be prioritized and handled seamlessly.
What’s in it for you?
With the Pre-Buy and Pre-Redeem features, you don’t have to worry about missing out due to high demand or limited availability. Whether you’re planning your next move or looking to lock in your redemption, these features are designed to give you more control and flexibility over your trading experience. It’s all part of our commitment to giving you tools that work harder, so you can focus on what really matters.
New Data Metrics: Transparency You Can Trust
Transparency has always been central to BFUSD’s design, and with our latest updates, we’re giving you an even clearer view of how this reward-bearing margin asset works. The new metrics we’re sharing provide actionable insights into BFUSD’s performance, ensuring you can fully understand and track how Binance generates income to fund BFUSD’s yields.
Protocol APY: Where Your Rewards Come From
One of the most significant updates is the introduction of how Protocol APY is displayed, which breaks down Binance’s income from the BFUSD Collateral Pool into two key components:
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Derivatives APY (Funding Fee Income): Income generated through our hedging strategies, which involve collecting consistent returns from futures markets.
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Earn APY (Staking Income): Rewards earned from staked assets like WBETH, which are then passed on to BFUSD holders.
Together, these streams form the foundation of Binance’s available funding for rewards for holders of BFUSD, giving you a clear understanding of how BFUSD adapts to market conditions while remaining a dynamic and rewarding asset.
Solvency Metrics: Backed by Robust Holdings
Every BFUSD in circulation is fully supported by Binance’s holdings, ensuring stability and building user confidence. To enhance transparency, we’ve introduced solvency metrics that provide a detailed view of BFUSD’s financial health, including:
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Total BFUSD Supply Trend: Track how the asset’s supply evolves over time.
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System Collateralization Ratio: Track the relationship between BFUSD supply and Binance’s holdings in the BFUSD Collateral Pool, including ETH, WBETH, USDT, and USDC. This ratio reflects the health of BFUSD, showing that it is fully backed by Binance’s total assets.
These metrics now include timeframes for longer data analysis, allowing you to view trends over 7 days, 30 days, or 180 days. Additionally, you can track the Reserve Fund, ensuring BFUSD remains stable and rewards protected even during fluctuations.
Expanded Transparency: Insights into Backing
To help you dive deeper, we’ve introduced metrics that give unparalleled visibility into the assets and strategies behind BFUSD. This enhanced transparency includes daily updated data and clear charts to help you track BFUSD in real-time
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Backing Notional: The total value of all assets and positions supporting BFUSD, measured in USDT.
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Holdings Breakdown: A comprehensive view of BFUSD’s backing assets, including the coin quantity held; the notional value of each asset in USDT; plus the percentage share of each asset (calculated as the notional value of an asset divided by the total value of all holdings).
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Position Metrics: Insights into the active futures contracts Binance uses for hedging, which play a critical role in generating funding fee income.
What’s in it for you?
These new metrics aren’t just about numbers — they’re about empowering you. With clear charts and data, you can track the different metrics over time, gaining a complete picture of how BFUSD is positioned, and how it generates results. We’re committed to making transparency the cornerstone of your experience. These data enhancements ensure that BFUSD remains not only a rewarding asset, but also one you can trust.
Final Thoughts
BFUSD has come a long way since its initial launch, and the recent updates shared here are just the start of what’s to come. With features like USDC support, Pre-Buy and Pre-Redeem capabilities, and greater transparency through new data metrics, we’re committed to making BFUSD an even more rewarding and user-friendly asset.
As part of these efforts, don’t miss our zero-fee campaign, running until March 2025. This initiative eliminates purchase transaction fees, making it easier than ever to buy BFUSD while maximizing your rewards.
And remember, user feedback always remains at the heart of these improvements, driving us to deliver flexibility, transparency, and value. Thank you for being part of the BFUSD journey. Together, we’re building a smarter, more empowering future for trading. Stay tuned for more updates as we continue to innovate for your success.
Further Reading
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What Is BFUSD and How to Use It as Margin in Futures Trading
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How to Buy BFUSD and Redeem for USD Stablecoin
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How are the Reward Rates for BFUSD Holders determined?
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BFUSD Data Metrics
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BFUSD Terms
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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