Binance Introduces New Earn Offering: RWUSD - Here's the Full Scoop
Binance, the world's largest tier-1 cryptocurrency exchange, has announced the introduction of RWUSD, a principal-protected product under Binance Earn. This new offering allows users to earn up to 4.2% annualized yield (APR) by subscribing with stablecoins USDT or USDC, which are then converted to RWUSD at a 1:1 ratio [1][2][3][4].
RWUSD is a unique on-chain asset backed by the strength of the Binance ecosystem. It benchmarks returns against tokenized real-world assets (RWAs), primarily tokenized U.S. Treasury bills, providing relatively stable and market-competitive returns within the Binance ecosystem [1][2][3][4].
Key details and benefits of RWUSD include:
- Yield and asset backing: Offering up to 4.2% APR, generated from high-quality real-world assets like tokenized U.S. Treasury bills, RWUSD provides stable and market-competitive returns within the Binance ecosystem [1][2][3][4].
- Principal protection: Users' initial subscription amount is protected, meaning they get back their principal in full when redeeming RWUSD [2][3][4].
- Subscription and redemption: Users can subscribe to RWUSD with no subscription fees and can redeem either instantly (Fast Redemption, 0.1% fee) or after 3 days (Standard Redemption, 0.05% fee) [2][3][4].
- Rewards distribution: Rewards accrue daily and are distributed directly to users' Spot Accounts in the form of RWUSD [1][4].
- Non-transferability and product nature: RWUSD is not a stablecoin, security, or tokenized asset itself and cannot be traded between users or withdrawn outside Binance. It records the user's subscription and rewards within Binance Earn only [1].
- Use case and positioning: RWUSD enables users to earn yield linked to tokenized traditional financial assets without the complexity and risk of directly holding those assets, effectively bridging crypto and traditional finance markets [2][3].
Binance is committed to increasing the freedom of money, and the positive feedback for previous products like BFUSD and LDUSDT is seen as a sign that they are on the right track in developing RWUSD. Jeff Li, VP of Product at Binance, emphasizes the importance of the new product for the ecosystem's progress and RWA adoption worldwide.
Users can subscribe to RWUSD with amounts up to $5 million, and Binance Earn has helped over 11 million users accrue earnings and savings with their crypto assets. The projected APR at launch for RWUSD is up to 4.2%.
In summary, RWUSD combines the benefits of stable principal, steady yield (up to 4.2% APR), daily rewards, flexible redemption options, and exposure to real-world financial instruments through a secure Binance product aimed at increasing crypto users' earning opportunities with lower risk [1][2][3][4].
[1] Binance Blog Post: https://blog.binance.com/en/2022/09/28/introducing-rwusd-a-principal-protected-product-on-binance-earn/ [2] Binance Earn Product Page: https://www.binance.com/en/earn [3] Binance Earn FAQ: https://support.binance.com/hc/en-us/articles/4403165463684-Binance-Earn [4] Binance Earn RWUSD Product Page: https://www.binance.com/en/earn/product/rwusd
- Binance's newly introduced RWUSD allows users to earn up to 4.2% annualized yield by subscribing with stablecoins USDT or USDC, which are then converted to RWUSD at a 1:1 ratio.
- RWUSD is a unique on-chain asset backed by the strength of the Binance ecosystem, benchmarking returns against tokenized real-world assets like US Treasury bills.
- Users can subscribe to RWUSD with amounts up to $5 million, and Binance Earn has helped over 11 million users accrue earnings and savings with their crypto assets.
- RWUSD combines the benefits of stable principal, steady yield, daily rewards, flexible redemption options, and exposure to real-world financial instruments through a secure Binance product, aiming to increase crypto users' earning opportunities with lower risk.
