Binance Launches New USTC Perpetual Contract with 50x Leverage

Binance's New Trading Opportunity

Binance is launching a new USTC perpetual contract, offering traders up to 50x leverage. This offering comes amid rising interest in USTC and LUNC, two tokens linked to the Terra ecosystem that have seen volatility earlier this year.

Trading Features and Risk Management

The new contract allows trading against USDT and includes a funding rate of ±2.00%, recalculated every four hours. The introduction of this derivative product is part of Binance's strategy to diversify trading options in response to market demand. To manage market risks, Binance retains the right to adjust contract terms as necessary.

Incentives for Liquidity Providers

To boost participation and liquidity, Binance is offering maker fee rebates to select liquidity providers for about two weeks post-launch. The rebate is set at 0.005%, designed to stimulate trading activity and ensure liquidity for this new instrument.

Context of USTC and LUNC

The launch follows significant changes in the Terra ecosystem, where USTC, previously TerraUSD, has stopped minting and introduced a burn mechanism for LUNC. These steps aim to decrease token supply and assist USTC in reestablishing its USD peg. These measures are part of wider efforts to stabilize the tokens following the Terra crash, which disrupted their dollar parity and impacted investors worldwide.

By offering innovative trading solutions like the USTC perpetual contract, Binance continues to adapt to market dynamics and cater to the needs of traders seeking leveraged trading opportunities.