Bybit, a cryptocurrency with the second-largest open interest in BTC Futures, has introduced its new Liquidity Mining service.
Bybit users will be able to choose from three different liquidity pools: Bitcoin (BTC), Ether (ETH), and BitDAO (BIT), all of which are coupled with Tether (USDT). Users will be able to deposit funds into the pools and earn up to 30% APY.
Liquidity providers will be able to contribute one or both sides of the liquidity pair in all 160 countries where Bybit operates. The pool will rebalance the assets automatically, reducing the chance of a temporary loss. Providers of liquidity will get USDT rewards, which can be deposited into their accounts or reinvested in the pool to boost payouts.
Bybit’s Liquidity Mining pools are based on a revamped automated market maker (AMM) model. Users can add liquidity to earn yield derived from trading fees. The liquidity pools will also allow Bybit users to swap between assets without needing to leave the platform and with minimal slippage.
Bybit also provides market-based techniques to lock in profits and restrict losses, real-time prices to safeguard users from market manipulation, and an insurance fund to protect traders against negative equity and substantial losses beyond their position margin.
“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. To that end, our products offer some of the best yield-earning opportunities in the market today on one of the most reliable trading platforms out there. This marks another milestone in sharing growth opportunities with our community who believe in a future of DeFi and personal financial freedom,” said Ben Zhou, co-founder and CEO of Bybit.
Apart from an opportunity to gain returns with a low barrier to entry, one added benefit of liquidity mining is community building through trust. It incentivizes asset holders to be more involved in the community and play more active roles.
Bybit’s Liquidity Mining pools are part of their Bybit Earn range, which caters to investors with varying risk appetites. Dual Asset, for example, allowing customers to deposit their preferred asset and lock in a competitive yield; and Flexible Savings, which may be used as cryptocurrency savings accounts with safe, predictable yield payments.
