- In response to customer demand, Binance has raised the BFUSD Maximum Holding Limits by 50%.
- Users will have the option to redeem USDC or USDT from their BFUSD holdings, and they will be able to buy BFUSD using USDC.
Today, Binance Futures, the biggest cryptocurrency derivatives exchange based on trading volume, announced exciting new features and improvements to BFUSD, the first cryptocurrency exchange-issued reward-bearing margin asset. These include a new Pre-Buy and Pre-Redeem reservation system that gives consumers additional convenience and trading flexibility, as well as USDC functionality that enables users to buy and redeem BFUSD using USDC.
With 760 million BFUSD in circulation and a current Reserve Fund of 7.2 million USDT since its introduction in November 2024, Binance is showing signs of increasing user confidence and adoption. In response to customer demand, Binance has raised the BFUSD Maximum Holding Limits by 50%.
Binance Futures ranked #1 out of 20 premier centralized derivatives exchanges in CCData’s most recent Exchange Benchmark Report, which was released in November 2024. This indicates that Binance is still at the forefront of the industry thanks to its 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 have the option to redeem USDC or USDT from their BFUSD holdings, and they will be able to buy BFUSD using USDC in addition to USDT. In order to streamline user profits into one of the most popular digital currencies, all BFUSD rewards will now be regularly provided in USDC.
In order to satisfy liquidity demand and provide consumers more options, Binance supports various stablecoins, which is consistent with the expanded support of USDC.
Introduction of Pre-Buy and Pre-Redeem Functions
The BFUSD has timely supply and redemption, and it is completely collateralized. Users can now reserve their BFUSD purchase and redemption allocations during periods of high demand or limited supply thanks to Binance’s new Pre-Buy and Pre-Redeem contingency functions. This demonstrates how Binance anticipates users’ needs in advance, boosting their confidence in managing their capital and portfolio.
Additional Data Metrics Giving Users Increased Transparency
Three new sets of data metrics are being added by Binance to provide users with more information about how the company makes money to fund BFUSD. These are in addition to the current Reserve Fund, System Collateralization % (ratio), BFUSD Supply, Base APY, and Boosted APY metrics.
- APY protocol: The Total APY and its constituents—Derivatives APY (Funding Fee Income), which is produced by Binance’s hedging strategies to gather steady returns from futures markets, and Earn APY (Staking Income), which is produced by staking assets like WBETH—will be shown on a new historical chart.
- Solvency Metrics: Users can feel secure knowing that the asset is fully backed thanks to the new charts for Total BFUSD Supply Trend and System Collateralized Trend, which show the relationship between BFUSD supply and Binance’s holdings in the BFUSD Collateral Pool. Additionally, users can choose 7-, 30-, or 180-day timeframes for more in-depth data and trend analysis.
- Transparency Insights: A thorough breakdown of the entire worth of all the assets and positions that support the BFUSD Collateral Pool, providing users with a better understanding of how Binance uses its active futures positions for funding fee income generation and hedging.
All users can now take advantage of Binance’s Zero Purchase Fees Promotion for BFUSD, which has been extended until March 31, 2025. Before January 29, 2025, eligible users who buy BFUSD for the first time can also sign up for a promotion that offers up to 100% Bonus APY rewards.
