tl;dr
Binance has launched Discount Buy, a feature in its Earn portfolio allowing users to pre-order cryptocurrencies at discounted prices in low-volatility markets. Users lock in future purchases of assets like Bitcoin or Ethereum at preset prices below current levels or earn a fixed APR if purchase cond...
Binance has unveiled Discount Buy, a new feature within its Earn portfolio that allows users to pre-order cryptocurrencies at discounted prices in low-volatility markets. This product empowers investors to lock in future buys of assets like Bitcoin, Ethereum, BNB, or Solana at preset prices below current market levels, or alternatively, earn a fixed annual percentage rate (APR) if the purchase conditions aren’t met. The innovation removes the hassle of timing the market or closely monitoring fluctuating prices.
To participate, clients subscribe using stablecoins such as USDC or USDT and select a fixed-term product with specific parameters including Target Buy Price, Knockout Price, fixed APR, and Settlement Date. The Settlement Price is measured as the average market price over a 30-minute window on the settlement day. Depending on how this price compares to the set thresholds, users encounter one of three scenarios.
Scenario 1 triggers a 100% principal purchase if the Settlement Price is at or below the Target Buy Price, securing the crypto at the desired discount. Scenario 2 kicks in when the price is above the target but below the Knockout Price, resulting in a 50% crypto purchase at the target price and a 50% refund in stablecoins. Scenario 3, the safest option, returns the entire principal plus the APR if the price reaches or exceeds the Knockout Price, with no crypto purchase executed.
Discount Buy boasts zero trading fees on purchases, and once a subscription is set, all parameters—including purchase price, Knockout Price, duration, and APR—are locked in and cannot be changed. This approach offers a flexible, low-risk method for accumulating cryptocurrency, ideal for investors expecting minimal price swings and seeking a hands-off accumulation strategy.