On Wednesday, The Block reported that Binance will introduce its second revenue-generating margin asset, LDUSDT, on its futures trading platform later this month.
This will let users in Binance’s Simple Earn USDT Flexible Product convert locked-up USDT for futures trading while still earning real-time annual percentage rate (APR) rewards.
A Binance spokesperson said users can first lock in their APR by subscribing to the Simple Earn product, then convert the locked assets to LDUSDT for margin trading. They added that the APR updates every minute in real-time and is currently about 1.5%.
LDUSDT is Binance’s second reward-based margin asset, following the launch of BFUSD in November last year. While BFUSD offers rewards through delta hedging, funding fee income, and staking using USDT or USDC, LDUSDT is linked to Simple Earn APR.
Jeff Li, vice president of Binance’s product division, called LDUSDT an innovative tool to boost capital efficiency. He said it lets users earn rewards and trade on margin at the same time. He also emphasized its flexibility, noting that users can move their capital at any time.