Cryptocurrency exchange Binance is set to introduce a new USTC perpetual contract today at 12:30 UTC, offering traders up to 50x leverage. This development follows recent price increases in USTC and LUNC, two ecosystem-related tokens that experienced significant volatility earlier this year.
The new derivative product will enable trading against USDT and has a funding rate of ±2.00%, recalculated every four hours. Binance’s introduction of contracts is in line with its strategy of providing diverse trading options to meet market demand. The exchange has also taken measures to protect against market risks, retaining the ability to adjust contract terms if necessary.
In addition to the contract launch, Binance is incentivizing participation by offering maker fee discounts to select liquidity providers for approximately two weeks following the contract launch. This rebate is set at 0.005%, intended to attract more activity and ensure liquidity for the new trading instrument.
Binance’s move comes after USTC – formerly known as TerraUSD – suspended minting and introduced a burn mechanism for sister token LUNC. These steps were taken in an effort to reduce token supply and help USTC re-establish its peg to the USD. The adjustments are part of a broader effort to stabilize tokens following the Terra crash, which previously broke their dollar parity and affected investors globally.
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