Key takeaways:
- Cryptocurrency exchange Bybit has launched USDT-paired Bitcoin, Ethereum, and BitDAO Liquidity mining pools
- Liquidity providers can earn up to 30% APY on their digital asset deposit or pursue higher rewards levels by collateralizing their crypto for up to 3x leverage
- Bybit users can supply liquidity on either or both sides of the liquidity pair
Bybit launches BTC, ETH, and BIT liquidity pools, allowing users to generate up to 30% APY in USDT rewards
Bybit, one of the leading digital asset trading platforms and the second largest BTC Futures exchange, launched three new USDT-paired liquidity pools. As of May 19, Bybit users have the option to provide liquidity in Bitcoin, Ethereum, and BitDAO pools. Bybit allows users to earn up to 30% APY on their crypto deposit, with even higher reward tiers available when using up to 3x leverage.
Users participating in the new liquidity mining pools can supply liquidity on both sides of the liquidity pair. Rewards are distributed in the form of USDT, with investors having the option to withdraw their earnings or reinvest them to reach higher returns. In addition, the assets invested in the pools are automatically rebalanced to reduce the risk of impermanent loss.
Bybit is using an optimized automated market maker (AMM) model, which allows low slippage crypto swaps and provides users with the ability to earn a share of trading fees. Also, users can increase their pools exposure via leverage by collateralizing their existing crypto funds.
To protect investors from incurring excessive losses, Bybit employs a series of safeguards. Namely, the multi-layered liquidation protocols provide an added layer of investment safety, while advanced profit and losses managing strategies shield liquidity providers from potential market manipulation as well as unexpected and significant negative price movements.
Co-founder and CEO of Bybit Ben Zhou had this to say about the company’s Liquidity Mining offering:
“We are very excited about the opportunities Bybit’s Liquidity Mining will open up for all Bybit users. As traders ourselves, we understand the importance of having a diversified trading and investment strategy optimized for earning passive income on your assets.”
Zhou added that Bybit’s offering provides competitive “yield-earning opportunities” and is an important stepping stone towards a “future of DeFi and personal financial freedom.”
With the launch of new Liquidity Mining pools, Bybit has expanded its “Earn” suite of products and services, which allow cryptocurrency investors to pursue lucrative investment opportunities and generate passive income with their digital asset holdings with varying degrees of risk exposure.
