Binance introduced a new stablecoin, BFUSD, offering attractive opportunities for crypto users looking for passive income. The total supply of BFUSD is capped at 20 million tokens.
BFUSD launch and its features
BFUSD is a Binance stablecoin with an annual percentage yield of 19.55%, targeting crypto users interested in passive income. The stablecoin operates with a collateralization ratio of 105.54%, allowing users to earn rewards without staking or locking up their funds.
History and challenges for BUSD
Binance previously launched the stablecoin BUSD, which faced significant challenges in 2023. Issued by Paxos and regulated by the New York Department of Financial Services, BUSD was designed to maintain a 1:1 peg to the US dollar. However, in February 2023, Paxos was ordered to stop issuing BUSD due to regulatory scrutiny from US authorities, including the SEC.
BFUSD usage prospects
BFUSD's benefits include its potential use as collateral with a 100% ratio, making it an appealing option. However, the origin of its yield and sustainability remains unclear.
BFUSD opens new opportunities in the crypto sphere, although questions about its yield require further investigation. As Binance continues to seek stable solutions, it is interesting to observe future developments.
