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What is LDUSDT?
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LDUSDT is a yield-based margin asset designed specifically for futures trading launched by Binance. The official specifically points out that it is not a stablecoin. Users can exchange their USDT simple yield elastic product assets for LDUSDT.
LDUSDT has two functions. It can be used as trading margin and earn income at the same time. Binance allows users to use LDUSDT as the trading margin of perpetual contracts. At the same time, users holding LDUSDT can continue to obtain real-time annualized returns from Binance's principal-guaranteed and coin-earning current products.
Simply put, like the previously launched BFUSD, LDUSDT allows users to have low-risk returns and liquidity on their assets. It is also very beneficial to Binance, as it can earn more lending interest and contract funding fees. The founder of the veteran crypto community Benmo Community proposed that if Binance chooses to use FDUSD to rebuild the liquidity of lending and perpetual contracts, the underlying USD can also earn US bonds. According to the reserve report presented by First Digital Labs on February 28, 85% of the underlying USD of FDUSD is US Treasury bonds. This is equivalent to three sculptures in one. In essence, LDUSDT is a product that Binance shares the above benefits with users.
In general, BFUSD is more like an investment tool, creating additional value for users through Binance's proactive behavior. It is an additional buff for traders to obtain profits from frequent transactions in a bull market. LDUSDT is a door that opens the channel between Simple Earn and futures trading, and is a product that encourages conservative users to trade in a bear market.
Binance was too ambitious. They thought that the separation of interest and circulation of stablecoins would be an inevitable outcome, but they did not expect that Binance itself would be the one to revolutionize Binance.
Yield-bearing
Dual-purpose
Non-stablecoin
Perpetual margin asset
Flexible earnings
