- Binance announces the launch of USTC perpetual contract offering up to 50x leverage.
- The decision follows a significant increase in TerraClassicUSD (USTC) and Terra Classic (LUNC) prices.
In a strategic move that underscores the dynamic nature of the cryptocurrency market, Binance, the world’s largest crypto exchange, announced on Monday its decision to launch a USTC perpetual contract. This announcement, made at a time of notable market activity, particularly in the Terra ecosystem, signifies a major development in the crypto trading landscape (“Binance Launches USTC Perpetual Trading”).
Details of the USTC Perpetual Contract
As per the official statement from Binance on November 27, the exchange is set to introduce the USD-M USTC Perpetual Contract. A key feature of this new offering is the provision of up to 50x leverage for traders engaging in USTC perpetual trading. The launch, scheduled for 12:30 UTC on the same day, marks a significant expansion of Binance’s futures trading capabilities.
Trading Terms and Conditions
The new USTC perpetual contract on Binance comes with specific trading conditions. The funding fee settlement will occur every four hours, and the settlement asset designated is USDT. At the time of launch, the maximum funding rate for the USTCUSD Perpetual Contract is set at +2.00% / -2.00%. Furthermore, Binance is enabling its users to trade the USTCUSD Perpetual Contract across multiple margin assets, incorporating the Multi-Asset Mode in its trading framework. This approach offers traders a more flexible and diversified trading strategy.
Incentives for Liquidity Providers
Binance has also announced incentives for liquidity providers participating in USDⓢ-margined futures. Qualified providers will be eligible for a 0.005% maker fee rebate on trades involving the USTCUSD Perpetual Contract. This incentive is expected to last for approximately 14 to 15 days, encouraging more participation and liquidity in this new market offering.
Market Implications and Community Response
The announcement from Binance has not only heightened the excitement within the crypto community but has also raised speculation about prior knowledge among some investors. This speculation stems from the sudden rallies observed in the Terra ecosystem tokens, coinciding with Binance’s announcement.
The introduction of the USTC perpetual contract by Binance is a testament to the exchange’s commitment to expanding its trading options and adapting to market trends, reflecting a proactive approach in the ever-evolving world of cryptocurrency trading.