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%.
This new asset follows BFUSD, Binance’s first reward-based margin product launched last November. While BFUSD generates rewards through methods such as Dell Technologies hedging, funding fee income, and staking with USDT or USDC, LDUSDT ties directly to the 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.