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 secure returns through 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 rising 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 secure yields by means of arbitrage methods executed behind the scenes.
In contrast to 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 through the Earn interface. The method 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 essential evolution for long-term BTC holders searching for passive revenue with out compromising on safety or management.
Learn Extra: Bybit Change Evaluation: Is It Protected & 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 whole worth locked (TVL), $FBTC is supported by Mantle and Antalpha Prime and features as a Bitcoin-compatible asset throughout numerous 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, significantly by means of 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 by means of 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 prospects 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 by utilizing the soundness of Bitcoin and mixing it with high-yield potentialities in DeFi, the place Bitcoin lending will be safe, environment friendly, and linked with common trade techniques.
Trying Forward
Though Avalon is specializing in Bitcoin, the framework could also be utilized to different main cryptocurrencies. This notion might encourage different exchanges to type comparable alliances or native ties with on-chain lending platforms. Bitcoin’s safety and DeFi’s yield potential will underpin fashionable 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 in search of options to idle belongings.
