Binance has clarified that its upcoming BFUSD asset is not a stablecoin, addressing concerns raised by crypto users reacting to its promise of high yields. Following a post that suggested Binance would launch a stablecoin with a 19.55% annual yield, users expressed fears reminiscent of Terra's algorithmic stablecoin saga. Binance confirmed that BFUSD is a reward-bearing margin trading product that has not yet been launched. Traders will use BFUSD as collateral without needing to stake or lock up their funds, and will receive daily airdrops to their UM Futures Wallet based on the asset. The amount of BFUSD a trader can hold will depend on their social ranking on the Binance platform, dubbed their VIP level. Users drew parallels to the Terra ecosystem, particularly its former 20% yield offering, raising concerns about the sustainability of such high returns in a similar context.

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