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Binance has announced a new redemption option for users of BFUSD on Binance Earn, effective from October 14 at 10 a.m. UTC. Users can now choose between Standard Redemption and a newly introduced Fast Redemption option. The zero-fee subscriptions will continue until further notice.
According to Binance's announcement, BFUSD is a reward-bearing asset redeemable for USD stablecoins and can also be used as margin in Binance Futures. The introduction of two redemption paths aims to balance speed, cost, and liquidity needs. The company positions this change as expanded optionality, offering faster access via Fast Redemption versus lower costs through Standard Redemption.
Fast Redemption settles in real-time with a 0.1% fee and requires a minimum of 0.1 BFUSD. For regular holders, the daily limit is set at 10,000 BFUSD with the first 5,000 BFUSD being fee-free. For large holders, the daily limit increases to 200,000 BFUSD with the same fee-free allowance for the first 5,000 BFUSD. In contrast, Standard Redemption supports up to 20 million BFUSD daily at a lower fee of 0.05%, but with a three-day settlement period.
