Bybit Enhances Earn Program with Avalon’s CeDeFi Bitcoin Yield Solution
Bybit, a leading cryptocurrency exchange, has integrated Avalon Labs’ innovative CeDeFi protocol into its Bybit Earn platform, enabling users to generate passive income from their Bitcoin holdings. This strategic partnership marks a significant advancement in bridging the gap between centralized and decentralized finance.
Avalon’s solution allows Bybit users to earn yield on their Bitcoin (BTC) by participating in its institutional borrowing layer. By arbitraging fixed rates, users can achieve attractive returns without directly engaging with the complexities of DeFi protocols. This approach simplifies Bitcoin yield farming, making it accessible to a wider range of users.
Source: Avalon Labs
Avalon Labs’ substantial $2 billion+ credit line, announced in March, further underscores its ability to facilitate secure and scalable institutional borrowing. The fixed 8% borrowing cost for institutional borrowers accessing USDT liquidity without liquidating Bitcoin holdings creates a stable and predictable yield environment. This innovative system also supports Avalon Labs’ exploration of a Bitcoin-backed public debt fund under the SEC framework, opening opportunities for larger-scale capital deployment.
At the core of this integration is Avalon’s 1:1 Bitcoin-pegged token, FBTC. Developed in collaboration with Mantle and Antalpha Prime, FBTC is bridged onto Ethereum and other blockchains, enabling seamless interaction between CeFi and DeFi ecosystems. This multi-protocol system enhances flexibility and expands access to yield-generating opportunities.
The integration further leverages Ethena Labs’ synthetic dollar protocol, utilizing Ethena USD (USDe) and Ethena Staked USD (sUSDE) to deploy borrowed stablecoins into high-yield strategies. Avalon Labs ensures that returns are securely passed back to Bybit Earn users, enhancing the overall user experience.
This partnership underscores the growing synergy between CeFi and DeFi, offering users the benefits of both worlds—simplicity and accessibility from CeFi, combined with the innovative yield-generating potential of DeFi. Bybit’s users now benefit from a streamlined and regulated approach to Bitcoin yield farming, opening exciting new possibilities for passive income generation within the crypto landscape.