Binance, the world’s leading crypto exchange by trading volume, has made significant strides to improve its ecosystem with two innovations. These include the introduction of BFUSD, a reward-bearing margin asset, and the inclusion of Thena (THE) in its HODLer Airdrops program.

These programs reflect Binance’s continuous attempts to improve user interaction and offer traders cutting-edge solutions on its platform.

Thena Joins Binance’s HODLer Airdrops

Thena (THE), a decentralized exchange (DEX) and liquidity layer on the BNB Chain and opBNB, has become the second project in Binance’s HODLer Airdrops campaign. Thena, a community-driven platform focusing on SocialFi and decentralized finance (DeFi), was founded in 2022.

On September 26, the project received funding from the BNB Chain to create THENA ARENA, a SocialFi platform that combines social interactions and blockchain technology. Binance’s addition of Thena to its airdrop program has marked a significant turning point in the project.

It is also part of the crypto platform’s larger effort to compensate long-term token holders. According to the official announcement, eligible users who subscribed to BNB items on Binance’s Simple Earn platform would receive 7% of Thena’s total token supply (310,000,000 THE).

To be eligible for the airdrop, users had to lock their BNB tokens in flexible or fixed-term products during the subscription period from November 6 to 13.

Airdrop Eligibility and Trading Launch

Only users who live in approved jurisdictions and have finished their Know Your Customer (KYC) verification are eligible airdrop participants. According to Binance, local regulatory constraints prevent its customers in the United States, Canada, the United Kingdom, and Australia from being eligible.

The airdropped tokens will be automatically moved to the beneficiaries’ spot wallets. Notably, the THE/BTC, THE/USDT, THE/BNB, THE/FDUSD, and THE/TRY trading pairs will be available for traders starting on 27 November.

THE tokens are helpful for yield farming, liquidity provision, and accessing DeFi applications within the BNB Chain ecosystem. The airdrop program encourages loyalty within Binance’s user base by rewarding users appropriately based on snapshots of their BNB holdings.

BFUSD: A Reward-Bearing Margin Asset

On 27 November, Binance will introduce BFUSD, a unique margin asset intended to rejuvenate the trading experience for futures market players. Unlike conventional stablecoins, BFUSD functions as a unique margin asset designed to provide profits for its investors.

Although fees are involved, this cutting-edge margin asset can be bought or redeemed at 1:1 with USDT. With its almost 100% collateralization value, BFUSD is a desirable choice for traders looking for dependable leverage options.

Two forms of Annual Percentage Yield (APY) will be available for BFUSD holders – the Boosted and Base APYs. The former offers higher returns for active trading in USD-margined futures, while the latter pays customers for merely holding the asset.

Rewards are credited daily, guaranteeing all users a steady passive income.

Binance Sustains Returns through Innovative Strategies

Binance stated that its platform keeps its members’ BFUSD returns pool consistent by combining staking and delta hedging techniques. While staking activities bring extra revenue to the reward pool, delta hedging balances holdings between the spot and futures markets.

Binance has also created a Reserve Fund seeded with one million USDT to offset potential negative financing rates. This protection guarantees that the APY for BFUSD stays above zero even during market volatility.

Binance Founder Knocks Meme Coins

Meanwhile, Binance founder and former CEO Changpeng Zhao has stated that he is not against memes, but these coins are not what the industry currently needs. According to him, the crypto ecosystem should use blockchain to create practical applications that solve real-world problems.

His comment reflects growing concerns about the spread of low-utility tokens in the cryptocurrency market. Despite being created for entertainment, meme coins’ popularity has raised questions about their long-term worth.

Claims of market manipulation further complicate the debate around these meme-themed cryptocurrencies. Despite concerns over the impact of meme coins, a sizable segment of the crypto community still prefers this asset class.