'Not Just a Simple Financial Product: Decoding RWUSD' I've heard about this RWUSD product for a long time, and Binance has finally made an official announcement, raising the stable coin financial threshold to 4.2%, which is impressive. Previously, the financial returns of USDT on Binance were too low, staying between 1.73% and 3.5% over the past three months, forcing users to move stable coins around seeking better yields. Some say this product is mediocre, but it's not that simple. Let me explain its significance. ~~~~~~~~~~~~~~~~~ ⏩ This product may not have the highest returns during market highs, but it will be the most stable during market downturns (backed by US Treasury bonds) - a tool for surviving bear markets. ⏩ Binance is starting to compete with Tether and Circle's government bond stable coin business, sharing profits with retail investors. Where do Tether and Circle's high incomes come from? Isn't it from these profits? And they've restricted interest payments. So Binance designed a zero-friction product to let retail investors have a piece of the cake. Deeper analysis shows it's essentially cutting into USDT/USDC financial shares. Consider how much USDT you typically use for trading versus financial products. If during a bear market, you convert all your financial shares to RWUSD, how much less will USDT/USDC circulate? ⏩ Binance has another revenue channel, making it more profitable. Note the text mentions a maximum annual yield of 4.2%, which currently seems like pure marketing without actual earnings. However, given @binancezh's industry-leading reputation, compensation ability, clear product profit sources, and service level surpassing Coinbase, I believe many whales who are too lazy to operate will likely consider placing idle funds here, and likely for the long term. The impact might not be obvious during bull markets, but when the market cools down, I suspect this product could absorb massive idle market funds. After all, there's no need to convert to USD for Treasury bonds, and it can be quickly exchanged. Once it reaches a certain scale, collecting a small handling fee becomes Binance's pure "passive income". A quick calculation: Over the past 12 months, the average USDT+USDC supply was 170B. If 20% shifts to financial products during a market downturn, converting to RWUSD, and Binance charges a 0.1% management fee, the annual revenue would be 34M (34 million dollars). What if it's 0.2%? Also, don't forget that currently RWUSD can only be used as a lending collateral, but what if other functions are explored? Such as joint margin, or supporting DeFi projects for building? ~~~~~~~~~~~~~ In summary: This product is a strategic product for Binance to cut into USDT/USDC's market and increase income, not just a simple financial product. For small and medium users, it might just be an additional financial channel, but for large users with long-term stable financial needs, it's very valuable. It benefits Binance's income growth, and hopefully will ultimately benefit $BNB.

Correction: It is not zero wear and tear, and there is a fee for redeeming it. This sentence is inaccurate -- "So Binance designed this zero wear and tear product to let retail investors have their cake and eat it too."