BFUSD

BFUSD is a product offered by Binance and, in Binance's own description, a reward-bearing margin asset. Users obtain BFUSD with USDT; the asset aims to hold its value at the US dollar level and distributes daily rewards to holders. Although it is listed as a stablecoin in the catalogue, BFUSD is primarily a product designed for use within the Binance ecosystem, particularly in futures accounts.

BFUSD's rewards come from a delta-neutral strategy run by Binance: spot asset positions are held together with futures positions that offset their price risk, and the yield earned from funding fees and staking income is distributed to users. BFUSD can be used as collateral in Binance's dollar-margined futures products, so users can open positions while continuing to earn rewards on their collateral.

Whether BFUSD stays at the dollar level and whether the rewards continue depend on the direction of funding rates, the execution of the strategy, Binance's operational and legal risks and the rules in the regions where the product is offered. Lzzo.com takes the BFUSD/USDT price on Binance and converts it into dollars at Coinbase Exchange's USDT/USD rate for display on the chart.