Binance is rolling out a new reward-bearing margin asset, LDUSDT, designed to enhance trading flexibility on its futures platform. This innovative product allows users to convert locked USDT from Binance’s Simple Earn Flexible Product into LDUSDT, which can then be used as collateral for margin trading, all while still earning passive rewards. The reward is provided in real-time, with an annual percentage yield (APR) of around 1.5%, updated every minute.
The launch of LDUSDT follows the success of BFUSD, Binance’s first reward-bearing margin asset introduced in 2024. Unlike traditional stablecoins, LDUSDT is a crypto asset that enables traders to earn rewards without forfeiting liquidity for margin trading. This allows users to simultaneously earn rewards and engage in futures trading without sacrificing capital.
To start using LDUSDT, users must first subscribe to Binance’s Simple Earn product, locking their USDT for rewards. They can then convert their locked USDT into LDUSDT, which is automatically transferred to their Futures Wallet for use as margin. This integration enhances user flexibility, providing a dual benefit of earning rewards while participating in futures trading.
Jeff Li, Binance’s Vice President of Product, highlighted that LDUSDT is designed to maximize the potential of users’ assets, allowing them to redeploy their capital at any time. He emphasized that LDUSDT will help users optimize their investments, offering the flexibility to earn rewards while managing trading positions on the platform.
While LDUSDT is not a stablecoin, Binance stresses that it is a crypto asset tailored for margin trading, particularly within Binance’s futures platform. The product supports multi-asset mode trading and offers reward-earning potential for users involved in stablecoin-margined futures trades. Although Binance has yet to confirm an exact launch date, the product is expected to be available soon.
Despite ongoing legal challenges, Binance continues to maintain its position as the world’s largest cryptocurrency exchange by trading volume, with over 250 million users worldwide. By expanding its offerings with products like LDUSDT, Binance is reinforcing its commitment to providing users with enhanced capital efficiency and more ways to capitalize on their crypto assets in an ever-evolving market.
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