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 software. 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 dwell on Bybit’s Earn platform. This growth brings Bitcoin lending on-chain with a product designed to supply secure yields by arbitrage methods executed behind the scenes.
Not like conventional lending platforms with fluctuating returns, Avalon makes use of a fixed-rate borrowing mannequin. It permits Bybit to ship predictable returns to customers who deposit Bitcoin through 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 goal 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 earnings with out compromising on safety or management.
Learn Extra: Bybit Alternate Overview: Is It Secure & Legit to Purchase Crypto in 2025?
How the Avalon-Bybit Bitcoin Yield Engine Works
From Bitcoin to Yield—The Position of $FBTC
The method begins with $FBTC, a wrapped model of Bitcoin designed to keep up 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 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 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 Position 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 gives DeFi-powered returns to common clients and displays a extra normal 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 soundness of Bitcoin and mixing it with high-yield prospects in DeFi, the place Bitcoin lending may 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 could encourage different exchanges to kind related 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 property grows. The Avalon-Bybit connection boosts worth with out compromising transparency or management at a time when buyers are searching for options to idle property.
