Binance, one of the leading global cryptocurrency exchanges, has announced the launch of LDUSDT, its second reward-bearing margin asset, set for April 2025. This development follows the successful introduction of BFUSD in November 2024 and aims to blend passive income generation with active futures trading, enhancing capital efficiency for users. This note provides a detailed examination of LDUSDT, its features, operational mechanics, and implications, drawing from recent reports and official statements.
LDUSDT is described as a “reward-bearing margin asset” for Binance’s futures trading platform, not a stablecoin, despite some sources initially misrepresenting it as such. This distinction is crucial, as LDUSDT is designed specifically for use as margin in futures trading while offering reward-earning potential, aligning with Binance’s strategy to integrate yield generation with trading liquidity. The launch builds on the platform’s growth, with Binance Earn reporting over 10 million active users in 2024, a 144% increase in Total Value Locked, and significant growth in futures trading volume and transactions.
Launch Details
The launch is scheduled for this month, April 2025, as confirmed by recent articles dated April 9, 2025. While specific dates within the month are not publicly detailed, the timing coincides with Binance’s ongoing efforts to expand its product offerings. Users can access LDUSDT through the Binance website and app, with the asset available for conversion and trading upon launch.
Operational Mechanics
LDUSDT operates by allowing users to convert their USDT locked in Binance’s Simple Earn USDT Flexible Products into LDUSDT. Here’s how it works:
- Subscription to Simple Earn: Users first subscribe to Simple Earn USDT Flexible Products to receive rewards at the real-time Annual Percentage Rate (APR), currently around 1.5%, which updates on a minute-by-minute basis.
- Conversion to LDUSDT: Users can swap their locked USDT to LDUSDT through a swap function, transferring it to their futures account for use as margin.
- Futures Trading: LDUSDT can be used as margin in Multi-Asset Mode for USDⓈ-M perpetual contracts, enabling active futures trading.
- Reward Continuity: Even after conversion, users continue to accrue real-time APR rewards, ensuring passive income generation alongside trading activities.
This dual-purpose functionality is supported by a reserve fund, guaranteeing that the reward rate will never drop below zero, similar to the mechanism for BFUSD.
Reward Structure
The reward structure for LDUSDT mirrors that of Simple Earn Flexible Products, with a current APR of approximately 1.5%. This rate is dynamic, updating automatically to reflect market conditions, and is designed to incentivize deeper user engagement without drawing funds away from earning products. The guarantee of non-negative rewards, backed by a reserve fund, provides users with confidence in the asset’s stability for reward generation.
Comparison to BFUSD
LDUSDT follows BFUSD, Binance’s inaugural reward-bearing margin asset launched in November 2024. While both assets aim to blend yield and trading, LDUSDT offers distinct advantages:
- Simplicity: Unlike BFUSD, which involves delta hedging and staking strategies, LDUSDT is simpler, retaining the real-time yield from Simple Earn without requiring arbitrage between stablecoins.
- Flexibility: LDUSDT allows users to redeploy capital at any time, enhancing operational versatility.
- Reward Mechanism: Both assets ensure non-negative rewards, but LDUSDT’s integration with Simple Earn Flexible Products provides a seamless experience for existing users.
BFUSD, on the other hand, accrues a base APY daily, with additional boosted APY for qualifying futures trading activity, and cannot be withdrawn or traded openly, only redeemed for USDT.
