Binance introduced BFUSD, a new stablecoin offering up to 19.55% in annual returns. However, the asset is not yet launched.
What is BFUSD?
BFUSD is a yield-bearing stablecoin tied to the Binance ecosystem. As of now, the asset has not been generated on the blockchain and is nominally priced in US dollars. Unlike classical stablecoins, BFUSD is designed as a reward-bearing asset.
How will BFUSD be used?
BFUSD will be used within the Binance ecosystem, including its Launchpad. Possessing BFUSD in a Binance wallet will grant users a higher yield. It can also be used as collateral in Binance's income pools.
What are the risks of BFUSD?
The high yield of BFUSD raises questions about its sustainability. Comparisons with other stablecoins, such as Luna's UST, suggest caution. To acquire BFUSD, users must have BNB and a certain VIP level on the platform. The asset, despite its crypto-based collateral, does not comply with European MiCA regulations.
BFUSD offers high yields and various applications within the Binance ecosystem, but users are advised to proceed with caution and monitor the project's developments.
