Binance's Most Profitable Yield Farming Stablecoin? Understanding LDUSDT's "Fee and Interest Double Earning" in One Article

By: blockbeats|2025/04/10 17:45:02

Just yesterday, Binance announced the upcoming launch of a new reward-bearing margin asset called LDUSDT. This is another "stablecoin" financial product that can be used as margin for contract trading, following the launch of BFUSD in November 2024. What is LDUSDT, and how does it differ from BFUSD?

A "Stablecoin" That Is Not a Stablecoin

LDUSDT is a "yield-bearing margin asset" designed by Binance specifically for futures trading, with the official notice emphasizing that it is not a stablecoin. Users can convert their held USDT simple yield flexible product assets into LDUSDT.

LDUSDT serves two purposes: it can be used as trading margin while also earning yield. Binance allows users to use LDUSDT as margin for perpetual contract (inverse perpetual contract) trading, and users holding LDUSDT can continue to earn real-time annualized interest from Binance's "Principal Protected Coin" current product.

In simple terms, similar to the previously launched BFUSD, LDUSDT allows users' assets to simultaneously have "low-risk yield" and "liquidity." This is beneficial for Binance as well, as it can earn more lending interest while also earning more contract funding rates. The founder of the OG Crypto Community proposed that "if Binance chooses to use FDUSD to rebuild lending and perpetual contract liquidity, the underlying USD can also earn U.S. Treasury bonds." According to the reserve report presented by First Digital Labs on February 28th, 85% of the underlying USD composition of FDUSD consists of U.S. Treasury bonds. This is essentially a win-win situation, with LDUSDT being a product through which Binance shares the above-mentioned benefits with users.

Binance's Most Profitable Yield Farming Stablecoin? Understanding LDUSDT's

How Is It Different from BFUSD?

After Binance launched BFUSD on November 27, 2024, similar products appeared, such as Dex Backpack and HUOBI Exchange, but their influence was not as significant as Binance's BFUSD. However, after the launch of BFUSD, although the model was innovative and participants generally believed that the model could improve liquidity, some issues with the product also emerged.

There is high yield volatility. The yield of BFUSD includes both the base interest rate and trading bonuses, with the holding limit linked to VIP levels. This model is highly dependent on market conditions and users' own trading activities. While it could reach a peak APY of up to 38%, if the market is in a one-sided trend or the trading volume is insufficient, the actual yield may be lower than expected, even approaching the minimum value of the base interest rate. During the high market liquidity at the end of last year, the APY could be maintained at around 20-30%, but starting from February-March this year, the APY has been close to 0% on many occasions.

The interest rates for retail and professional traders are different. The additional reward of BFUSD is linked to user's futures trading volume, allowing high-frequency traders or whales to significantly increase their earnings. In contrast, regular users with low trading volume may only receive the base interest rate, making the cost-effectiveness low. This design of BFUSD leans more towards professional traders rather than ordinary retail traders.

On the other hand, LDUSDT, although similar in its usage to BFUSD, has a different income structure. BFUSD is based on hedging strategies and staking, while LDUSDT's income comes from Binance sharing the annualized returns of its "Simple Earn" where users can earn risk-free returns, including a portion of platform fees, lending income, or some low-risk investment returns.

Due to these reasons, BFUSD is currently not popular in the market. Unlike BFUSD, which can experience significant fluctuations due to funding rate volatility, LDUSDT's advantage lies in its relative stability. However, the trade-off is that its yield may not be as high. While these yields may seem insignificant during a bull market, they present a good option for those seeking stable returns and liquidity during times of relatively low liquidity. Additionally, as it does not rely on the user's trading strategy, its operation is comparatively simple, thereby enabling more retail investors to participate.

Successive Launch of Yield Stablecoins, What Is Binance's Intention?

Overall, BFUSD is more like an investment tool created by Binance to provide additional value to users through proactive actions, a "Buff" of additional gains for traders who frequently trade during a "bull market." On the other hand, LDUSDT acts as a gateway, bridging the gap between Simple Earn and futures trading, a product that incentivizes conservative users to trade during a "bear market."

KOL "Loki_Zeng" expressed his feelings about this, saying, "Binance is so innovative. Thinking about the interest and circulation separation of stablecoins will inevitably lead to a final scenario, but I didn't expect Binance itself to revolutionize it." Whether BFUSD or LDUSDT, what Binance aims to do is to activate a large amount of idle stablecoins on the exchange, wrap them in a leveraged shell, and keep them within the Binance ecosystem to continue providing vitality to real business.

The water in this liquidity sponge is being squeezed by a larger hand. Can it help us survive the dry spell before the "water release"? Currently, Binance has not released more detailed information about LDUSDT, and BlockBeats will continue to monitor this matter.

-- Price

On June 9, The Kobeissi Letter, citing Goldman Sachs data, reported that global investors are selling South Korean stocks at an unusually rapid pace. In the latest trading session, foreign investors sold about $801 million worth of Kospi constituent stocks again; total foreign outflows last week reached about $10 billion, and the market has been in net foreign selling on nearly every trading day over the past month. According to the data cited in the report, foreign investors have sold about $75 billion worth of South Korean stocks so far this year. Meanwhile, South Korean retail and institutional investors together recorded roughly $69 billion in net buying over the same period, suggesting that the market’s main buying support has come from domestic capital rather than returning overseas funds. The information currently disclosed still mainly comes from The Kobeissi Letter’s retelling and Goldman Sachs data summaries, while public details on the statistical period and the specific definition of “selling” remain relatively limited.

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In the fast-moving digital asset ecosystem, derivatives platforms face an extreme architectural test. High-leverage futures markets demand more than just standard security—they require absolute operational precision, zero-latency matching engines, and ironclad structural scalability, all while navigating intense market volatility.

As global platforms scale to meet these demands, the industry is shifting away from rigid, monolithic setups toward a more agile, "decoupled" infrastructure philosophy.

The Blueprint for High-Volume Copy Trading

For elite global exchanges like WEEX (founded in 2018), this architectural choice becomes critical when scaling high-volume retail features like social copy trading. When thousands of users automatically mirror the real-time strategies of elite traders simultaneously, it triggers sudden, monumental spikes in concurrent transactional volume.

To prevent execution latency or settlement bottlenecks during these peak volatility events, a platform's primary engine must remain entirely dedicated to risk management, copy-trade synchronization, and order matching.

The Architectural Rule: New-generation platforms must separate front-end user execution engines from heavy backend infrastructural overhead to eliminate operational friction.

By separating these layers, platforms can maintain complete sovereignty over their trading environments and user experiences while strategically aligning with institutional-grade infrastructure ecosystems. This strategic framework allows modern exchanges to leverage advanced Digital Asset Custody infrastructure such as Cobo’s behind the scenes, ensuring that backend wallet management scales elastically alongside trading spikes.

Capitalizing on Market Momentum and 400× Leverage

In a derivatives arena where platforms offer up to 400× leverage on perpetual contracts, capital efficiency and market agility are core business metrics. To capture market momentum, an exchange needs the ability to rapidly expand its asset offerings, supporting everything from legacy crypto assets to sudden, trending altcoins across a massive library of trading pairs.

Adopting a flexible, scalable Wallet-as-a-Service (WaaS) solution such as Cobo’s could completely rewrite the development timeline for high-growth exchanges. Instead of spending months of engineering capital building out custom backend wallet architectures for every new blockchain network, platforms can deploy localized infrastructure in days.

This agility allows platforms to instantly scale their listings to over a thousand trading pairs without compromising security or delaying time-to-market. It mirrors the exact operational advantages seen during high-velocity market events, similar to how advanced wallet infrastructure empowers platforms during sudden asset surges; allowing exchanges to pass that speed and liquidity directly to their global user base.

A Mature Foundation for Growth

The synergy between trusted infrastructure ecosystems and global trading platforms represents the natural evolution of a maturing crypto market. As WEEX continues to scale its global spot and derivatives offerings for over 6 million users, adopting robust backend paradigms proves that platforms no longer have to compromise between cutting-edge trading velocity and uncompromised structural security.

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