BFUSD is a collateral and rewards token by Binance that is to be used in Binance Futures to collateralized margins in future trades. The benefit of this token is that any user can hold it without locking or staking and get rewarded.
Is BFUSD a Stablecoin?
No, unlike other reward tokens or LP tokens, BFUSD is used for a specific purpose and cannot be swapped with other crypto like stablecoins are.
Tokens like BFUSD are not true cryptocurrencies like stablecoins, rather they are specific application tokens used for a single purpose. In the case of BFUSD, this purpose is to act as a collateral token to provide margin to futures traders using Binance Futures.
How to Get BFUSD?
There are multiple ways you can get a BFUSD token.
BFUSD is not widely used yet and might still need some time (a year perhaps) to get some traction. Currently, there are limited ways through which you can get it.
- Buying via Binance: You can buy it directly from the Binance exchange using your account balance or purchase it with a card, money transfer, etc.
- Swapping with USDT on UM Wallet: Alternatively, you can get BFUSD by swapping it with USDT on the UM wallet which is a non-custodial defi wallet.
Comparison With Terra’s UST
BFUSD has been compared with Terra USD for its high reward rate. However, both of them are way too different than each other and just the similarity of yields does not mean both will meet the same fate.
- Terra’s UST was an algorithmic stablecoin with LUNA acting as a burn-based backing asset. BFUSD is a fully collateralized stablecoin with no links to BNB Coin, which is the main token of the Binance ecosystem.
- Unlike Terra’s UST, BFUSD is 100% redeemable because it is fully collateralized. This feature saved USDT and USDC from a crash when both of them suffered high redemption rates during UST’s collapse.
Frequently Asked Questions
1. Is the APY on BFUSD guaranteed?
No, the APY listed anywhere in BFUSD website or on this page is purely indicative. It has no relation to the currently prevaing BFUSD yield rate.
2. How to I avail the Boosted Rate?
You need to perform certain trades in your Binance account to be able to get the boosted yield (approx. 10% higher than regular yield).
3. Which stablecoins can I use to purchase BFUSD?
Currently only USDT can be used to purchase BFUSD.
USDC is not allowed because Binance has been discouraging its use.
I assume other stablecoins like FDUSD and PYUSD would be available soon.
4. Is there a maximum limit for BFUSD purchase?
You are limited by the VIP level of your account in Binance to purcahse BFUSD. For example, my VIP level is 2 so I am allowed to purchase a max of 600k BFUSD tokens.
- VIP level – Maximum Limit Amount (in BFUSD)
- 0 – 100,000
- 1 – 400,000
- 2 – 600,000
- 3 – 800,000
- 4 – 1,000,000
- 5 – 1,200,000
- 6 – 1,400,000
- 7 – 1,600,000
- 8 – 1,800,000
- 9 – 2,000,000
