Key Takeaways:
Avalon Labs has partnered with Bybit to launch a brand new Bitcoin-based fixed-income product.The platform makes use of $FBTC as collateral, enabling Bitcoin to generate steady returns by way of DeFi methods.This CeFi-to-DeFi integration permits Bybit customers to earn yield on BTC with predictable risk-managed returns.
Working with Bybit’s Earn platform, Avalon Labs has launched a brand new fixed-rate Bitcoin lending instrument. The combination signifies growing momentum for institutional-grade Bitcoin options within the bigger DeFi ecosystem.
Avalon’s Institutional Layer Goes Reside on Bybit Earn
Avalon Labs introduced that its institutional-grade lending layer is now reside on Bybit’s Earn platform. This growth brings Bitcoin lending on-chain with a product designed to supply steady yields via arbitrage methods executed behind the scenes.
Not like conventional lending platforms with fluctuating returns, Avalon makes use of a fixed-rate borrowing mannequin. It allows Bybit to ship predictable returns to customers who deposit Bitcoin by way of the Earn interface. The strategy leverages Avalon’s backend infrastructure to supply yield utilizing institutional borrowing markets and DeFi-native alternatives.
By enabling this infrastructure, Avalon and Bybit purpose to place Bitcoin not solely as a retailer of worth but additionally as a yield-bearing asset—an necessary evolution for long-term BTC holders in search of passive revenue with out compromising on safety or management.
Learn Extra: Bybit Alternate Evaluate: Is It Secure & Legit to Purchase Crypto in 2025?
How the Avalon-Bybit Bitcoin Yield Engine Works
From Bitcoin to Yield—The Function of $FBTC
The method begins with $FBTC, a wrapped model of Bitcoin designed to take care of a 1:1 peg to BTC. With over $1.25 billion in complete worth locked (TVL), $FBTC is supported by Mantle and Antalpha Prime and features as a Bitcoin-compatible asset throughout varied blockchain ecosystems, together with Ethereum.
Customers deposit BTC, which is transformed into $FBTC. Avalon then makes use of this $FBTC as collateral on its platform to facilitate fixed-rate loans in USDT. These borrowed funds are deployed into high-yield DeFi methods, notably via liquidity devices like $USDe and $sUSDE, each of that are a part of the Ethena Labs ecosystem.
This DeFi technique layer permits Avalon to lock in constant yield via low-risk, diversified protocols. The returns from these methods are then handed again to Bybit, which distributes them to Earn customers primarily based on their Bitcoin contributions.
Learn Extra: Bybit Referral Code “CNJREFERRAL” and $30,000 Signal Up Bonus 2025
Avalon Labs’ Rising Function in On-Chain Bitcoin Lending
Avalon Labs has already carved out a place within the on-chain lending and Bitcoin-backed stablecoin sector. The cooperation with Bybit provides DeFi-powered returns to common clients and displays a extra common transfer into centralized platforms.
Avalon’s emphasis on fixed-rate, collateral-backed lending suits rising institutional demand for items that present constant returns in a turbulent market. Avalon is creating a brand new lane in crypto finance through the use of the steadiness of Bitcoin and mixing it with high-yield potentialities in DeFi, the place Bitcoin lending might be safe, environment friendly, and linked with common alternate programs.
Wanting Forward
Though Avalon is specializing in Bitcoin, the framework could also be utilized to different main cryptocurrencies. This notion might encourage different exchanges to kind comparable alliances or native ties with on-chain lending platforms. Bitcoin’s safety and DeFi’s yield potential will underpin trendy crypto finance as institutional and retail curiosity in productive digital belongings grows. The Avalon-Bybit connection boosts worth with out compromising transparency or management at a time when traders are searching for alternate options to idle belongings.
