Binance Launches LDUSDT Token Offering 1.5% APY With Futures Trading

Binance has introduced a new token, LDUSDT, designed to combine passive income with futures trading. This token allows customers to convert their USDT into LDUSDT, enabling them to trade on futures markets while their tokens are locked in the Simple Earn Flexible platform. This innovation provides users with the opportunity to earn passive income through an Annual Percentage Yield (APY) of 1.5%, which Binance guarantees will never drop below zero.

LDUSDT builds on the success of BFUSD, another reward-bearing asset launched by Binance in 2024. Unlike BFUSD, LDUSDT offers the added functionality of futures trading, providing customers with a more versatile investment option. The new token leverages the APY model to generate income from various investment strategies, aligning with Binance's goal of increasing customer utility. Jeff Li, Binance VP of Product, emphasized that LDUSDT aims to enhance customer utility by offering both passive income and market liquidity on futures.

Customers can swap their USDT from the Simple Earn Flexible Product to LDUSDT, using it as margin while simultaneously receiving APY rewards. This new product, including the app, will be available on Binance soon. The introduction of LDUSDT allows traders to earn rewards by using their tokens to trade futures, effectively doubling the utility of their tokens. This aligns with Binance's broader goal of increasing utility within its ecosystem and transforming cryptocurrency into a functioning currency.

BFUSD, the precursor to LDUSDT, utilized delta hedging between spot and futures markets, allowing customers to earn rewards from staking. However, LDUSDT simplifies the process by focusing on the pre-existing Simple Earn USDT Flexible Product and adding the ability to trade futures markets. This streamlined approach makes LDUSDT more accessible and user-friendly, enhancing the overall trading experience for Binance customers.

The launch of LDUSDT is part of Binance's ongoing efforts to innovate and expand its product offerings. By combining passive income with futures trading, Binance aims to attract a wider range of customers, from conservative investors to active traders. This new token not only enhances the utility of USDT but also provides a more comprehensive investment solution, allowing customers to enjoy the benefits of both passive and active trading strategies.