Binance clarified that BFUSD is a reward-bearing margin asset, not a stablecoin.
The announcement triggered concerns, with many comparing BFUSD to the collapse of TerraUSD (UST).
Binance has clarified the nature of its new asset, BFUSD, stating that it is a reward-bearing margin asset rather than a stablecoin. The statement posted on X (formerly Twitter) came after users raised questions on the platform due to a previous post by Zoomerfied, a crypto news aggregator. The post stated that a new stablecoin named BFUSD would yield a massive 19.55% per annum, which was met with comparisons to the downfall of TerraUSD.
[ ZOOMER ]
BINANCE TO LAUNCH NEW STABLECOIN WITH 19.55% APY: BLOG
— zoomer (@zoomerfied) November 18, 2024
Reactions and Parallels to TerraUSD Collapse
The first post received a lot of response from the crypto community, with many people comparing it to the recent failure of TerraUSD (UST) in 2022. UST is an algorithmic stablecoin that offered a 20% annual yield through
