Question 1

What is BFUSD (BFUSD)?

Accepted Answer

BFUSD is a reward-bearing asset issued by Binance for use within its platform. It is redeemable for a USD-denominated stablecoin (exchange credit) on Binance and pays daily rewards on eligible balances. BFUSD can serve as collateral in USDⓈ-M Futures while rewards continue to accrue. It is not a blockchain token and cannot be withdrawn on-chain. Binance has stated that BFUSD is not a stablecoin.

Question 2

# How it works (rewards and value stabilisation)

Accepted Answer

- **Reward sources:** Binance indicates rewards are funded by delta-hedging/funding-fee strategies and staking (e.g., ETH via Binance Earn/WBETH). A dedicated BFUSD Reserve Fund is maintained to support the strategy.
- **Value stabilisation:** A delta-hedging approach (long spot and short futures) is used to align BFUSD’s redemption value to ~1 USD equivalent.
- **Transparency:** A BFUSD data dashboard publishes supply, reserve fund and “System Collateral Ratio” figures.

Question 3

What is BFUSD (BFUSD) used for?

Accepted Answer

- **Yield-generating balance:** Holding BFUSD earns daily rewards; no separate staking action is required.
- **Futures collateral:** In Multi-Assets Mode, BFUSD counts as margin with near-full collateral value, allowing users to earn while maintaining futures positions.
- **Binance Earn access:** From 14 August 2025, BFUSD subscriptions are available via Binance Simple Earn following a product transition.
- **Redemption:** BFUSD is redeemable to a USD stablecoin within Binance. USDC support for BFUSD subscriptions/redemptions ends on 25 August 2025; USDT remains supported. BFUSD itself is not depositable or withdrawable.

Question 4

Who created BFUSD (BFUSD)?

Accepted Answer

BFUSD is a proprietary product of Binance. Binance introduced BFUSD with rewards sourced from funding-fee strategies and staking, supported by a BFUSD Reserve Fund and a transparency dashboard.

Question 5

Key mechanics and risk considerations

Accepted Answer

- **Variable rate:** Reward rates change with funding fees, staking returns and reserve needs. Users should check the current daily rate (reported around ~3% APR in August 2025).
- **Operational scope:** BFUSD operates only inside Binance. Redemptions can be subject to platform conditions and settlement windows.
- **Collateral and reserves:** Binance reports collateral and reserve metrics (including a System Collateral Ratio). As of August 2025, Binance reported a reserve ratio of about 100.86%.

#	Instrument	Exchange	Benchmark Score	Price	24h Change	24h Volume	24h Trades	24h Open	24h High
1	BFUSD-USDT BFUSDUSDT	binance	AA	1,00USDT	0,01%	2.041.035,00BFUSD	4.217	0.9999USDT	1,00USDT
2	BFUSD-USDC BFUSDUSDC	binance	AA	0.9983USDC	0,00%	13.932,00BFUSD	31	0.9983USDC	0.9995USDC