TLDR
- Binance Futures is launching LDUSDT, a new reward-bearing margin asset
- Users can swap USDT from Simple Earn Flexible Product for LDUSDT
- LDUSDT can be used as margin for stablecoin-margined futures trading
- Holders earn Real-Time APR rewards (currently around 1.5%)
- LDUSDT follows BFUSD, Binance’s first reward-bearing margin asset
Binance is expanding its suite of reward-bearing assets with the upcoming launch of LDUSDT, a new token designed specifically for futures traders. This product will allow users to earn yields while simultaneously using their funds as margin for trading activities.
LDUSDT will be Binance’s second reward-bearing margin asset, following the earlier release of BFUSD. The new token isn’t a stablecoin but rather a crypto asset created to serve a dual purpose – providing trading margin while generating returns for holders.
Users who want to access LDUSDT will need to swap their Tether (USDT) holdings from Binance’s Simple Earn Flexible Product. Once converted, the LDUSDT can be utilized as margin for stablecoin-margined futures trading positions.
How LDUSDT Works
The new asset works similarly to its predecessor BFUSD. It allows traders to earn annual percentage yields through Binance’s hedging and investment strategies. These strategies generate income through funding fees and staking rewards.
According to reports from The Block, the current annualized yields for holding LDUSDT are approximately 1.5%. This rate isn’t fixed, however, as Binance stated the rewards will be updated on a minute-by-minute basis.
LDUSDT will be available on both the Binance website and mobile app. The exchange has not yet announced an exact launch date but indicated it would be “soon” in their announcement.
For futures traders, this represents an opportunity to make their margin capital work harder. Traditionally, funds used as trading margin sit idle, generating no returns when not actively employed in open positions.
Benefits for Traders
The primary appeal of LDUSDT lies in its dual functionality. Traders can use it as margin for USDⓈ-M Futures trading in Multi-Asset Mode while simultaneously earning rewards comparable to those from Simple Earn Flexible Products.
This approach potentially solves a common dilemma for traders – whether to keep funds in yield-generating products or available for trading opportunities. With LDUSDT, users no longer need to choose between earning yields and having capital ready for trades.
The Real-Time APR rewards accrue automatically to LDUSDT holders. This mirrors the functionality of the Simple Earn USDT Flexible Assets program but with the added benefit of margin utility.
Binance has positioned this product as part of their ongoing efforts to provide value-added services to users. The exchange appears to be leveraging its scale and liquidity to create unique products that smaller competitors may struggle to match.
For active traders on the platform, LDUSDT represents a way to optimize capital efficiency. Even funds that are allocated as margin but not currently deployed in active positions can generate returns.
