Binance Drops Pax Dollar (USDP) Support, But There’s A Catch
Binance, one of the foremost cryptocurrency exchanges globally, has officially announced a significant transition in its margin assets on the Binance Futures platform. In a move aimed at enhancing the trading experience and aligning with market demands, Binance will be shifting its support from USDP to FDUSD. This transition signifies a strategic adjustment to better cater to the evolving needs of its user base.
Effective from the 8th of March at 09:00 (UTC), Binance will commence support for FDUSD as a margin asset. This marks the initiation of the transition process. Consequently, support for USDP will cease on the 14th of March 06:00 (UTC), signifying the completion of the transition period. This announcement underscores Binance’s commitment to adaptability and responsiveness to market dynamics, ensuring that traders have access to the most relevant and efficient trading tools and assets.
Operational Changes and Advisories
In preparation for the transition, Binance has implemented several operational changes and advisories to facilitate a seamless process for its users. Notably, transfer-in limits for USDP in the Multi-Assets Mode have been adjusted to zero. This adjustment is crucial to streamline the transition process and minimize disruptions to trading activities.
Furthermore, to address any remaining USDP balances in USDⓈ-M Futures wallets, Binance will automatically convert them to USDT at a 1:1 ratio after the 14th of March at 06:00 (UTC). To safeguard against potential losses, users are strongly advised against adding new futures positions during this conversion period. This advisory highlights Binance’s proactive approach to risk management and its commitment to protecting the interests of its users during times of transition.
Also Read: South Korea Probes Worldcoin Citing Privacy Concerns, WLD Price Dip Ahead?
Implementation Details and Market Considerations
The implementation of FDUSD as a margin asset brings about several operational considerations and adjustments. Transfer-in limits for FDUSD will be contingent upon users’ VIP levels, ensuring a fair and equitable trading environment. Additionally, Binance has introduced a 1% haircut rate for FDUSD in the Auto-Exchange feature, enhancing risk management capabilities for traders utilizing this functionality.
Crucially, the calculation of FDUSD margin balances will be based on the real-time FDUSD price index, providing traders with accurate and transparent margin calculations. It’s imperative to note that Binance reserves the right to modify transfer-in limits and haircut rates in response to prevailing market conditions. This flexibility underscores Binance’s commitment to adaptability and its proactive stance in ensuring a robust and resilient trading ecosystem for its users.
Also Read: Bitcoin Ordinals Volume Hits $50 Million, NFT NodeMonkes Price Rally
The post Binance Drops Pax Dollar (USDP) Support, But There’s A Catch appeared first on CoinGape.
Read More
Binance Drops Pax Dollar (USDP) Support, But There’s A Catch
Binance, one of the foremost cryptocurrency exchanges globally, has officially announced a significant transition in its margin assets on the Binance Futures platform. In a move aimed at enhancing the trading experience and aligning with market demands, Binance will be shifting its support from USDP to FDUSD. This transition signifies a strategic adjustment to better cater to the evolving needs of its user base.
Effective from the 8th of March at 09:00 (UTC), Binance will commence support for FDUSD as a margin asset. This marks the initiation of the transition process. Consequently, support for USDP will cease on the 14th of March 06:00 (UTC), signifying the completion of the transition period. This announcement underscores Binance’s commitment to adaptability and responsiveness to market dynamics, ensuring that traders have access to the most relevant and efficient trading tools and assets.
Operational Changes and Advisories
In preparation for the transition, Binance has implemented several operational changes and advisories to facilitate a seamless process for its users. Notably, transfer-in limits for USDP in the Multi-Assets Mode have been adjusted to zero. This adjustment is crucial to streamline the transition process and minimize disruptions to trading activities.
Furthermore, to address any remaining USDP balances in USDⓈ-M Futures wallets, Binance will automatically convert them to USDT at a 1:1 ratio after the 14th of March at 06:00 (UTC). To safeguard against potential losses, users are strongly advised against adding new futures positions during this conversion period. This advisory highlights Binance’s proactive approach to risk management and its commitment to protecting the interests of its users during times of transition.
Also Read: South Korea Probes Worldcoin Citing Privacy Concerns, WLD Price Dip Ahead?
Implementation Details and Market Considerations
The implementation of FDUSD as a margin asset brings about several operational considerations and adjustments. Transfer-in limits for FDUSD will be contingent upon users’ VIP levels, ensuring a fair and equitable trading environment. Additionally, Binance has introduced a 1% haircut rate for FDUSD in the Auto-Exchange feature, enhancing risk management capabilities for traders utilizing this functionality.
Crucially, the calculation of FDUSD margin balances will be based on the real-time FDUSD price index, providing traders with accurate and transparent margin calculations. It’s imperative to note that Binance reserves the right to modify transfer-in limits and haircut rates in response to prevailing market conditions. This flexibility underscores Binance’s commitment to adaptability and its proactive stance in ensuring a robust and resilient trading ecosystem for its users.
Also Read: Bitcoin Ordinals Volume Hits $50 Million, NFT NodeMonkes Price Rally
The post Binance Drops Pax Dollar (USDP) Support, But There’s A Catch appeared first on CoinGape.
Read More