Binance is launching LDUSDT, a hybrid asset that allows futures users to use their locked USDT in Simple Earn while still generating passive returns.
Unlike BFUSD, LDUSDT is easy to use, without arbitrage between stablecoins, and maintains the real-time yield of the Simple Earn Flexible product at around 1.5%.
LDUSDT guarantees a non-negative yield and offers full flexibility, allowing users to redeploy their capital at any time for futures trading.
LDUSDT: Binance Introduces Margin Token with Yield
Binance continues its strategy with the upcoming launch of LDUSDT, a hybrid asset for users of its futures platform. Designed as a reward-bearing margin asset, LDUSDT allows futures traders to mobilize their USDT locked in the Simple Earn Flexible product while still earning passive interest.
This new mechanism transforms the way users can optimize their capital on Binance. Previously, USDT invested in yield products could not be used for other purposes until unlocked. With LDUSDT, Binance offers a bridge between two often conflicting uses: passive yield and liquidity for trading.
LDUSDT: The Successor to BFUSD
After the launch of BFUSD last November, LDUSDT marks a new milestone in the creation of multifunctional assets on Binance. While BFUSD involved a more complex yield logic based on delta hedging strategies, funding fees, and staking, LDUSDT simplifies the approach: it maintains the real-time interest rate of the Simple Earn product, currently around 1.5%, and updated by the minute.
Unlike BFUSD, LDUSDT does not require any conversion or arbitrage between stablecoins (such as USDT and USDC). Users simply subscribe to the Simple Earn Flexible product in USDT and then exchange these locked funds for LDUSDT, which can be used as margin in the futures market.
A Guaranteed Yield and Total Flexibility
Binance ensures that the LDUSDT interest rate can never be negative. By exactly replicating the APR of the flexible yield product, the company guarantees users continuous performance even when reallocating their capital to trading.
Jeff Li, Vice President of Product at Binance, emphasizes the goal of this innovation:
LDUSDT increases capital efficiency for our users. It allows their assets to generate a return while being available for trading, all with the flexibility to redeploy their capital at any time.
A Response to User Capital Optimization
With over 10 million active users on its Earn products and a claimed total of 250 million users on the platform, Binance is responding to a growing demand for flexible tools. LDUSDT is part of a strategic vision: enabling traders to increase the productivity of their funds without compromising accessibility.
