Main conclusions

  • BFUSD is a rewarded leveraged trading asset that you can use to trade futures and earn daily rewards funded by hedging and staking strategies on Binance — now with exciting updates to enhance its flexibility and transparency!

  • BFUSD, previously only available for USDT, can now be purchased and redeemed for USDC, with all future rewards routinely issued in USDC.

  • The new “Pre-buy/Pre-redeem” feature allows you to reserve allocations in advance, ensuring smooth transactions, while expanded data metrics provide more transparency into how BFUSD earns rewards, giving users more control.

This is a general announcement. The products and services mentioned here may not be available in your area.

When we launched BFUSD in November 2024, our goal was clear: to give futures traders a smarter way to grow their capital while earning daily rewards. In just a few months, BFUSD has made its mark on the market, with 760 million BFUSD in circulation and a reserve fund of 7.2 million USDT (to date), demonstrating strong community support.

New to trading BFUSD? In short, it’s a rewarded leveraged trading asset that you can buy with USDT or USDC, use as leverage to trade futures, and earn daily rewards from hedging and staking strategies on Binance. BFUSD offers competitive returns with an annual percentage return that systematically adjusts to market conditions — and it also features a reserve fund to protect traders during downturns, ensuring stability and peace of mind.

With our latest update, BFUSD takes another leap forward. These changes are designed to make BFUSD more versatile and user-friendly, from expanded options like USDC support and pre-buy/pre-redeem features to enhanced transparency with new data metrics. Let’s explore how these updates will elevate your trading experience!

USDC Support: More Options for Greater Flexibility

This month, we’re excited to introduce USDC support for BFUSD. This means you can buy BFUSD with both USDT and USDC, giving you greater versatility and more options to get the most out of your trading. Additionally, all rewards will be routinely issued in USDC, making your earnings the most usable digital asset. This applies to all BFUSD rewards, regardless of whether BFUSD was purchased with USDT or USDC.

What's in it for you?

By supporting multiple stablecoins, we give you the freedom to align BFUSD with your personal trading preferences and investment portfolio strategy. Whether you’re a USDT fan or a USDC enthusiast, this update ensures that BFUSD fits seamlessly into your financial plans, making it easy to trade, earn, and grow your Binance balances.

Advance Purchase and Advance Redemption: Plan Ahead with Confidence

The new Pre-Buy and Pre-Redeem features are designed to provide more convenience and control for BFUSD users. These reservation systems ensure smooth transactions and provide a proactive solution for future needs.

  • Pre-purchase: While BFUSD supply is constantly meeting demand, this feature allows you to reserve BFUSD in advance by depositing USDT or USDC. It is an added layer of flexibility for users who want to plan ahead and secure their allocations.

  • Pre-Redeem: When reselling BFUSD, this feature allows you to pre-reserve your stablecoins. It is designed to simplify the process and give you confidence that your redemption will be prioritized and processed smoothly.

What's in it for you?

With our Advance Purchase and Advance Redemption 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 secure a refund, 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 to you.

New Data Metrics: Transparency You Can Trust

Transparency has always been a core element of BFUSD’s design, and with our latest updates, we’re giving you a clearer view of how this reward-rich virtual trading asset works. The new metrics we’re sharing provide actionable insights into BFUSD’s performance, ensuring you fully understand and track how Binance generates income to fund BFUSD returns.

Protocol Annual Yield Percentage: Where Your Rewards Come From

One of the most important updates is the introduction of how the protocol’s annual yield ratio is displayed, which breaks down Binance’s income from the BFUSD collateral pool into two main components:

  • Annual Derivatives Yield (Financing Fee Income): Income generated from our hedging strategies, which involve generating fixed returns from the futures markets.

  • Annual Return Percentage of Earn (Storage Income): Rewards earned from staking assets such as WBETH, which are then passed on to BFUSD holders.

Together, these flows form the basis of the funding available from Binance for rewards to BFUSD holders, giving you a clear understanding of how BFUSD adapts to market conditions while remaining a dynamic and rewarding asset.

Financial solvency metrics: backed by strong holdings

Every BFUSD token in circulation is fully backed by Binance’s holdings, ensuring stability and building user trust. To enhance transparency, we have introduced solvency metrics that provide a detailed view of BFUSD’s financial health, including:

  • BFUSD Total Stock Trend: Track how the asset's stock is evolving over time.

  • System Collateral Ratio: Tracks the relationship between BFUSD inventory and Binance’s holdings in the BFUSD collateral pool, including ETH, WBETH, USDT, and USDC. This ratio reflects the health of BFUSD, indicating that it is fully backed by Binance’s total assets.

These metrics now include longer time frames for analyzing data, allowing you to view trends over 7 days, 30 days, or 180 days. Additionally, you can track your reserve fund, ensuring that BFUSD remains stable and rewards are protected even during volatility.

Expanded Transparency: Insights into Support

To help you dig deeper, we’ve introduced metrics that give you unparalleled insight into the underlying assets and strategies behind BFUSD. This enhanced transparency includes daily updated data and clear charts to help you track BFUSD in real-time.

  • Nominal Support: The total value of all assets and trades that support the BFUSD pair, measured in USDT.

  • Holdings breakdown: A comprehensive view of the assets backing BFUSD, including the amount of coins held; the face value of each asset in USDT; and the percentage stake of each asset (calculated as the face value of the asset divided by the total value of all holdings).

  • Trade Metrics: Insights into the active futures contracts Binance uses for hedging, which plays a crucial 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 different metrics over time, getting a complete picture of how BFUSD is doing, and how it’s delivering results. We’re committed to making transparency a cornerstone of your experience. These data improvements ensure that BFUSD remains not only a rewarding asset, but one you can trust.

Closing thoughts

BFUSD has come a long way since its initial launch, and the recent updates shared here are just the beginning of what’s to come. We’re committed to making BFUSD a rewarding and easy-to-use asset, with features like USDC support, pre-buy and pre-redeem capabilities, and greater transparency through new data metrics.

As part of these efforts, don’t miss the opportunity to participate in the Fees Free Campaign, which runs until March 2025. This initiative eliminates purchase transaction fees, making it easier than ever to buy BFUSD while maximizing your rewards.

Remember, user feedback is always at the heart of these improvements, driving us to deliver flexibility, transparency, and value. Thank you for being a part of the BFUSD journey. Together, we are building a smarter, more empowering future for trading. Stay tuned for more updates as we continue to innovate to help you succeed.

Disclaimer: You are solely responsible for your investment decisions and Binance will not be held liable for any losses you may incur. Reward rates (including base and boosted rates) are calculated daily and are expressed as Annual Percentage Yield (APY) for illustrative purposes only. The reward rate does not represent BFUSD performance for any period other than the date specified and is not indicative of future results. Reward rates are likely to fluctuate from day to day. Past performance is not a reliable indicator of future performance. You should only invest in products that you are familiar with and understand the risks involved. You should consider your investment experience, financial situation, investment objectives and risk tolerance and seek advice from an independent financial advisor before making any investments. BFUSD cannot be withdrawn or used for any purposes other than for virtual trading in a Binance Futures account. Withdrawal restrictions may apply, which may affect your ability to redeem BFUSD for USD-backed stablecoins. This content should not be construed as financial advice. For more information, please see the Terms of Use, BFUSD Terms and Risk Warning.To learn more about how to protect yourself, please visit our Responsible Trading page.