CryptoBinance unveils LDUSDT to let users earn real-time APR...

Binance unveils LDUSDT to let users earn real-time APR rewards while trading futures

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Key Takeaways

  • Binance is launching LDUSDT, a new dual-benefit margin asset offering APR rewards and futures trading.
  • LDUSDT allows conversion of USDT Flexible assets for trading while earning Real-Time APR Rewards.

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Leading crypto exchange Binance is set to launch LDUSDT, a new reward-bearing margin asset that enables users to earn real-time APR rewards while trading futures, blending capital efficiency with income generation, the company announced Wednesday.

Users can swap their USDT from Binance Simple Earn USDT Flexible Products into LDUSDT, which can then be used as margin collateral in futures trading.

LDUSDT will continue to receive real-time APR rewards at prevailing rates, similar to holding USDT in Simple Earn Flexible Products.

The new offering could help Binance incentivize deeper user engagement in both passive and active trading products. This could increase futures trading volume without drawing funds away from Simple Earn.

The announcement follows the launch of BFUSD, also a margin asset for futures trading, designed to provide passive rewards. Introduced last November, BFUSD lets users earn a base APY that accrues daily, with an additional boosted APY for qualifying futures trading activity.

BFUSD generates returns through delta hedging and staking strategies. Although it cannot be withdrawn or traded openly, Binance allows you to redeem it for USDT.

Binance ensures that the reward rate for BFUSD will never drop below zero, supported by a reserve fund to cover all negative funding fees.

“LDUSDT increases capital efficiency for users and lets users put their assets to work for them as both a reward-earning and liquid trading margin asset, all while retaining flexibility to redeploy their capital at any time,” said Jeff Li, VP of Product at Binance.

Binance Earn currently serves over 10 million active users and recorded a 144% increase in Total Value Locked in 2024. The platform’s futures division saw growth of 106% in average daily transactions and around 19% in average daily volume during the same period.

Binance plans to launch LDUSDT this month, with more details to follow.

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