Binance is set to launch its second reward-bearing token, LDUSDT, which will offer traders the chance to earn annualized yields of up to 1.5% through futures trading margin.
Binance Futures will introduce LDUSDT, a reward-bearing margin asset that accrues rewards to holders. Traders can swap their tether (USDT) for LDUSDT on Binance’s Simple Earn Flexible Product to use as margin for futures trading.
LDUSDT is a cryptocurrency pair that represents a tradeable asset on various online exchanges.
It combines the USD (United States dollar) and the Tether stablecoin, with the 'L' prefix indicating it's listed on the Ledger exchange.
This pairing allows traders to buy or sell Tether tokens in exchange for US dollars, providing liquidity and stability to cryptocurrency markets.
How LDUSDT Works
LDUSDT is not a stablecoin but a Cryptocurrency“>crypto token[/highlight] designed specifically for use as futures trading margin while simultaneously offering reward-earning potential. As of Wednesday, annualized yields for holding the token are around 1.5%, per The Block, and will be updated on a minute-by-minute basis.
Building on BFUSD’s Success
LDUSDT builds on the success of BFUSD, Binance’s inaugural reward-bearing margin asset, which debuted earlier and enabled users to earn annual percentage yields (APY) through the exchange’s hedging and investment strategies. The introduction of LDUSDT aims to provide traders with another option for earning rewards while using futures trading as a margin.
Trading with LDUSDT
Traders can swap their tether (USDT) on Binance’s Simple Earn Flexible Product for LDUSDT, which can then be utilized as margin for stablecoin-margined futures trading. This new asset is expected to bring more opportunities for traders to earn rewards while participating in the Binance Futures market.
- coindesk.com | Binances Second Reward Bearing Asset LDUSDT to Launch Soon
