BFUSD Gets Even Better: USDC Support, New Features, and More Transparency

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 circulationand 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 supportand a Pre-Buy/Redeemfeature to enhanced transparency with new data metrics, these changes are designed to make BFUSD even more versatile and user-friendly. Lets explore how these updates elevate your trading experience!

USDC Support: More Choices for Greater Flexibility

This month, were 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.

Whats in it for you？

By supporting multiple stablecoins, were giving you the freedom to align BFUSD with your personal trading preferences and portfolio strategy. Whether youre 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-Buyand Pre-Redeemfeatures 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.

• Pre-Buy:While BFUSD supply has consistently met demand, this feature allows you to reserve BFUSD in advance by depositing USDT or USDC. Its an added layer of flexibility for users who want to plan ahead and secure their allocation.
• Pre-Redeem:When selling BFUSD back, this feature lets you reserve your stablecoins in advance. Its designed to streamline the process and give you confidence that your redemption will be prioritized and handled seamlessly.

Whats 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. Its 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 BFUSDs 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 Binances income from the BFUSD Collateral Pool into two key components:

• Derivatives APY (Funding Fee Income):Income generated through our hedging strategies, which involve collecting consistent returns from futures markets.
• 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 Binances 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 metricsthat provide a detailed view of BFUSDs financial health, including:

• Total BFUSD Supply Trend:Track how the assets supply evolves over time.
• 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, weve introduced metrics that give unparalleled visibility into the assets and strategies behind BFUSD. This enhanced transparency includes daily updated dataand clear charts to help you track BFUSD in real-time

• Backing Notional:The total value of all assets and positions supporting BFUSD, measured in USDT.
• Holdings Breakdown:A comprehensive view of BFUSDs 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).
• Position Metrics:Insights into the active futures contracts Binance uses for hedging, which play a critical role in generating funding fee income.

Whats 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. Were 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, dont 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, were building a smarter, more empowering future for trading. Stay tuned for more updates as we continue to innovate for your success.