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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 tokens associated with the ecosystem that saw significant volatility earlier this year.
The new derivative product will allow trading against USDT and offer a funding rate of ±2.00%, recalculated every four hours. Binance’s introduction of this contract is part of its strategy to offer various trading options in response to market demand. The exchange has also put in place measures to guard against market risks, retaining the possibility of adjusting the terms of the contract if necessary.
In addition to the contract launch, Binance is encouraging participation by offering intermediation fee discounts to select liquidity providers for approximately two weeks following the contract introduction. This discount is set at 0.005%, with the aim of attracting more activity and ensuring the liquidity of the new trading instrument.
Binance’s move comes after USTC – formerly known as TerraUSD – stopped minting currency and introduced a burning mechanism for its sister token LUNC. These measures were taken in an effort to reduce the supply of tokens and help the USTC restore its parity with the dollar. The adjustments are part of broader efforts to stabilize the tokens following the Terra collapse, which previously disrupted their parity with the dollar and affected investors globally.
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