The post Binance is launching a new stablecoin BFUSD with 19.55% APY appeared on BitcoinEthereumNews.com.

Binance introduced a new stablecoin tied to its ecosystem, BFUSD. The stablecoin offers up to 19.55% APY, with a limit on ownership and staking.  Binance launched another native stablecoin, BFUSD, with a yield-bearing potential of up to 19.55% annualized. Binance itself reminded users that the actual asset has not yet launched or even been generated on the blockchain. The asset is also nominally priced in parity to the US dollar but is not a classical stablecoin. Binance reminded users that BFUSD is not a classic stablecoin, but a reward-bearing asset. The exchange operator also stated it would clarify how the yield of BFUSD will be achieved in the near future.  BFUSD is not yet launched. To be clear, it is not a stablecoin but a reward-bearing margin asset for futures trading. We are glad to see the community’s interest and will be sharing more details soon including how APY is determined — Binance Customer Support (@BinanceHelpDesk) November 18, 2024 The actual nature of the token invited comparisons to Ethena’s USDe, which depends on making gains based on Ethereum funding rates. The launch of this type of assets led to speculation that BFUSD would be a competitor to Ethena’s USDe.  In the case of Ethena, USDe supply must be closely monitored to remain viable in multiple market scenarios. Initially, BFUSD will be used mainly within Binance’s ecosystem. However, since the asset is used as collateral, it could cause limited contagion within that ecosystem.  The actual supply and distribution of BFUSD is yet to start, but Binance has set up the main requirements for the coin. Users can buy a limited amount of BFUSD, which can be used for passive rewards.  Simply owning BFUSD in a user’s Binance wallet will grant a relatively higher yield. BFUSD can also be used as collateral…

---

Filed under: News - @ November 18, 2024 10:26 pm