On November 14, 2024, Binance got here ahead to clear the fog round ‘BFUSD’ after the small print of its new asset launch leaked on X.
As per the report, the tweet was posted from Zoomer, claiming that Binance is planning to launch a brand new stablecoin with 19.55%. This viral publish was time-sensitive as Bitcoin is at the moment crusing by means of one of many largest rallies of its historical past.
BFUSD Recollects Reminiscence of Terra
The assure of 19.55% APY has raised skepticism about BFUSD on X, recalling the reminiscence of as soon as the most important stablecoin TerraLUNA, which turned out to be a catastrophe later.
https://x.com/RunnerXBT/status/1858581361864401141
UST, the algorithmic stablecoin of the Terra ecosystem, was designed to keep up a 1:1 peg with the USD by way of LUNA, its companion foreign money. The 20% APY promise was a key half, which was maintained by means of the Anchor Protocol, a lending and borrowing platform.
Nevertheless, panic promoting and UST depeg created a failure in Terra’s algorithmic mechanism, forcing its mission to wind up operations. This occasion has realized that the flowery promise of 20% APY is an unsustainable lure.
Quickly after, Binance Buyer Help responded to the publish. Binance clarified that BFUSD just isn’t but launched and the mission remains to be within the pipeline. Additionally, Binance has refused to name BFUSD a stablecoin, as an alternative, claiming it to be a reward-bearing margin asset for futures buying and selling.
Usually, a reward-bearing margin asset in crypto futures buying and selling refers to a margin asset that not solely leverages as collateral but additionally generates extra rewards, reminiscent of curiosity or staking yields. These belongings enable merchants to maximise their utility whereas having fun with future buying and selling on the identical time.
Primarily based on customers’ VIP degree, customers’ quota for BFUSD holdings shall be determined. Customers will be capable of buy BFUSD immediately from the ‘UM pockets’ by way of USDT. Lively merchants will even get an opportunity to take part in every day airdrops despatched to their “UM Futures Pockets” primarily based on snapshots.
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