Has the era of trading as financial management arrived? The CEX battle is on for [contract subsidy war.

Exchanges are rolling out new features that break down the boundaries between trading and wealth management, allowing users to earn interest while trading. This may become the standard product configuration of future exchanges, bringing greater efficiency to user funds. (Synopsis: The exchange has fallen again!) Tradeogre “Ogre” court documents exposed: find no physical address; Hundreds of thousands of users are afraid to evaporate tens of millions of magnesium) (background supplement: roller king!) A trader used $125,000 to long Ethereum and now has a floating profit of $25 million) Today’s news that “**Coinbase updates derivatives rules, will provide gradient subsidies to USDC as contract collateral, up to 12% annualized” has sparked widespread discussion in the community. The Chinese region KOL benmo.eth first disclosed the update on X, commenting: “The product is directly benchmarked against capital fee products such as BFUSD and USDE, and in the current low fees, the rewards have been counter-killed.” For example, if you margin 1 million USDC and open a long BTC position worth 2 million, then your 1 million USDC margin naturally carries an annualized 8% return; If your margin is 10 million USDC and you open a 20 million contract, then your 10 million USDC will receive an annualized 12% return. At a time when derivatives competition is becoming more and more intense, Circle and Coinbase direct cash subsidies to expand the market, the former seeking USDC in the derivatives market. This move is of great strategic significance, and it has also further pulled the entire capital market into the Red Sea battlefield." As mentioned, this update of Coinbase is actually targeting Binance (Binance)'s BFUSD, but since it does not involve currency swaps, the model is relatively more straightforward. The so-called BFUSD is the incentive margin asset BFUSD launched by Binance (Binance) for contract users at the end of last year, users only need to hold BFUSD to continue to earn income, and also use the stablecoin as margin for contract accounts to achieve “earn while using”. As shown in the figure below, although the current BFUSD base annualized is “only” 5.82%, the data backtracking shows that it has exceeded 10% many times. Coincidentally, OKX has recently launched a similar feature to break down barriers between trading and wealth management, and the model is more radical - covering spot goods in addition to contracts. On August 15, OKX announced the launch of the “Auto Earn on Trading Accounts” feature for VIP users. This function can help users automatically lend assets in their trading accounts and earn income without affecting the use of assets as staking and trading margins - and most importantly, pending orders or assets used for cross margin can also be automatically earned. The first phase of this function only supports USDT, which is suitable for account modes such as spot, contract, cross-currency margin, and portfolio margin, and more currencies will be gradually opened in the future. For a long time, due to the need for risk isolation, major centralized exchanges have generally adopted the design of account partitioning - *\* trading accounts and wealth management accounts are independent of each other (even spot trading and contract trading under trading accounts are independent of each other). Although there is no obstacle to the transfer of funds between different accounts, this isolation design makes it impossible for users to balance “trading” and “managing money”. In the general scenario, users can also choose “time trading, idle time financial management”, **, but at the time of pending orders and in the opening of positions, they must give up the financial income of the corresponding time period. ** In short, this is a common “decision-making dilemma” faced by exchange users, assets are placed in trading accounts ready to capture market opportunities? Or do you transfer to a wealth management account to earn solid income? The desire to pursue income means that the funds cannot be used flexibly for a certain period of time; Maintaining liquidity, on the other hand, necessarily foregoes potential interest returns. Over the years, this model has been widely used by users, but habit does not mean perfect, and from a product point of view, there is clearly room for optimization. With the launch of targeted new features by top exchanges such as Binance (Binance), Coinbase, OKX, etc., this model that has lasted for many years is being completely reversed. From the user’s point of view, this means that the above “decision-making problem” will be broken, and funds will achieve higher utilization efficiency and interest-generating ability; From the perspective of the exchange, this may indicate that a new product standard is taking shape, the boundary between trading accounts and wealth management accounts will be blurred day by day, and “trading as wealth management” is expected to become the standard for exchanges in the future. All in all, being able to balance the needs of trading and wealth management in a simpler way is obviously good news for countless exchange users, and all this is due to the competition between exchanges in terms of users and funds - in the current competition in the trading track, who can better empower users, who can win the favor of users. Looking ahead, as cryptocurrency compliance deepens, more and more new players will enter the market, and the competition on the track will only become more intense, and as an ordinary user, I expect “they to play a little more lively”. Related reports Vietnam will launch the first national digital asset exchange, South Korea’s leading Upbit provides technical backing, and the funding rate can also be speculated! What are the features of Pendle launching Boros to “tokenize” perpetual contract fees? You are not mistaken about the book profit and loss, you just misbelieve the rules of the game behind perpetual contracts "Trading is the era of financial management? CEX Rush Starts [Contract Subsidy War] This article was first published in BlockTempo’s “Dynamic Trend - The Most Influential Blockchain News Media”.