Bybit, a leading crypto exchange, has joined forces with Avalon, a lending protocol, to provide users with opportunities to earn Bitcoin yield. Announced on April 14, this partnership integrates Avalon’s centralized decentralized finance (CeDeFi) product into Bybit’s yield platform, Bybit Earn. Users can earn returns by taking advantage of Bitcoin’s value while borrowing at a fixed rate. Avalon has recently secured a credit line of $2 billion for institutional loans backed by Bitcoin. The collaboration positions Bybit users to benefit from the yield potential while ensuring safe and straightforward access to their cryptocurrencies, bridging the gap between CeFi and DeFi.
Crypto exchange Bybit has made a significant move by partnering with Avalon, a leading lending protocol, to offer Bitcoin yield opportunities to its users. This collaboration allows Bybit’s platform to integrate Avalon’s centralized decentralized finance (CeDeFi) protocol into its yield product, Bybit Earn.
With this new feature, users can earn yield from their Bitcoin by participating in Avalon’s fixed-rate institutional borrowing layer. Coinbase aims to make Bitcoin not just a store of value but a productive asset that generates returns. Upon this announcement, Avalon Labs highlighted that their protocol allows institutional borrowers to access USDT liquidity without needing to liquidate their Bitcoin at a competitive borrowing cost of 8%.
Avalon Labs has also been active in exploring innovative financial products. In a recent exploration, they hinted at launching a Bitcoin-backed public debt fund under US regulatory frameworks. Co-founder Venus Li emphasized the potential of utilizing Regulation A to facilitate crypto companies while ensuring compliance with financial regulations.
The partnership represents a fusion of centralized and decentralized finance, providing users with greater access and regulatory compliance. Bybit Earn will utilize Avalon’s Bitcoin-pegged tokens, which will be utilized in high-yield borrowing strategies. This bridges the gap between centralized exchanges and decentralized financial opportunities, providing users a seamless experience in earning yields.
Avalon Labs’ innovative approach encapsulates the growing trend of merging CeFi and DeFi, making it easier for users to navigate the evolving cryptocurrency landscape. As the demand for Bitcoin yield products surges, this partnership positions Bybit and Avalon at the forefront of the industry.
In summary, Bybit’s collaboration with Avalon offers a fresh, lucrative way for users to engage with Bitcoin, ensuring that their investments not only retain value but generate returns in a smart, innovative manner.
Tags: Bybit, Avalon, Bitcoin yield, CeDeFi, cryptocurrency, cryptocurrency exchange, digital finance.
What is the Bybit and Avalon integration?
Bybit and Avalon have teamed up to create a bridge between centralized finance (CeFi) and decentralized finance (DeFi). This allows users to earn yields on their Bitcoin easily.
How does the bridge work for Bitcoin yield?
The bridge lets users move their Bitcoin from Bybit’s platform to Avalon. Once there, users can earn interest or yields on their Bitcoin by taking advantage of DeFi opportunities.
What are the benefits of using this bridge?
Using this bridge gives users more options to grow their Bitcoin holdings. You can earn higher yields compared to traditional savings methods while enjoying the security of using a reputable platform.
Is it safe to use the Bybit and Avalon bridge?
Yes, both Bybit and Avalon follow industry standards to ensure your Bitcoin is safe. They use advanced security measures to protect your funds during the transfer and while earning yields.
How can I start using this feature?
To start, you need to have an account with Bybit. After that, you can easily transfer your Bitcoin to Avalon through their platform. Just follow the on-screen instructions to complete the process.