BFUSD is an interest-earning asset convertible into USD stablecoin.
Holders can receive rewards on eligible balances and use them as margin for contract accounts to achieve the dual benefits of "trading + income".

Users holding BFUSD in their accounts will receive daily rewards settled in USD stablecoins at an annualized rate of return (APR) based on their eligible balances.

In order to distribute daily rewards to contract users holding BFUSD, Binance will invest the proceeds from its BFUSD sales and generate passive income. Reward sources mainly include:

1️⃣ Funding Fee Income

Binance adopts a hedging neutral strategy:
By holding positions in opposite directions in the contract and spot markets, you can earn Funding Fees in the perpetual contract market.
The funding fee is a periodic payment mechanism for both long and short parties to keep the contract price consistent with the spot price.

The Funding Rate will change independently with the underlying trading pair. Users can view the funding rate for each trading pair on the Binance Futures page.

This strategy avoids the risk of price fluctuations through period/spot hedging, so that profits on one side can offset losses on the other side, thereby obtaining stable returns when the funding rate is positive.

2️⃣ Staking Rewards

Binance earns staking returns by staking crypto assets.
For example: Staking ETH can earn WBETH staking rewards through Binance Earn.