Binance is set to introduce LDUSDT, a novel margin asset that offers rewards on its futures platform. This asset allows users to convert their locked USDT from the Simple Earn Flexible Product into LDUSDT, which they can utilize as margin collateral for futures trading and still earn passive rewards. The reward, presented as an annual percentage yield (APR), hovers around 1.5% and is updated in real-time every minute.
Following the rollout of BFUSD in 2024, which was Binance's first reward-bearing margin asset, LDUSDT differs from stablecoins by being a crypto asset that permits traders to earn rewards while maintaining liquidity in margin trading. It empowers users to engage in trading on Binance's futures platform and concurrently receive rewards. The APR for LDUSDT is guaranteed not to fall below zero, assuring users of positive returns on their investments.
To leverage LDUSDT, users must first participate in Binance's Simple Earn product, wherein USDT is locked up for rewards. Subsequently, the locked USDT can be converted into LDUSDT, which automatically transfers to the users' Futures Wallet for margin trading purposes. This integration is tailored to offer users enhanced flexibility, enabling them to both earn rewards and engage in margin trading activities simultaneously.
The launch of LDUSDT by Binance is in continuation of its commitment to furnish users with added utility. Building on the success of BFUSD, Binance is pushing ahead with LDUSDT to amplify capital efficiency for traders. With this new offering, users can earn rewards from their locked assets without compromising on trading funds. According to Binance's VP of Product, Jeff Li, LDUSDT is aimed at enabling users to optimize their asset potential while affording the freedom to redeploy capital as needed.
It is worth noting that LDUSDT is categorized as a cryptocurrency designed for margin trading on Binance's futures platform, not a stablecoin. This product supports multi-asset mode trading and promises reward-earning opportunities for users engaged in stablecoin-margined futures trading activities. While the official launch date for LDUSDT is yet to be confirmed by Binance, the product is expected to be available soon.
Despite encountering legal hurdles, Binance remains at the forefront as the world's largest cryptocurrency exchange by trading volume, boasting a user base exceeding 250 million globally. Through offerings like LDUSDT, Binance continually expands its range of products, enabling users to maximize their assets amidst the unpredictable landscape of cryptocurrency trading.