The Crypto Exchange Bybit cooperated with the protocol lending Avalon to offer bitcoin yield to its users.
According to an April 14 x Avalon Labs announcementThe centralized decentralized finances (CEDEFI) Protocol will be a part of the exchange product product, earn bybit. Avalon explained that it would allow platform users to earn Bitcoin produce (Btc) by arbitrating the fixed rate of institutional borrowing layer.
Source: Avalon labs
Avalon labs announced in March That it raised a minimum of $ 2 billion worth of credit with a possible scale as the demand appeared. The product allows to talk aboutUSDT) Liquidness without losing their Bitcoin holders to a fixed 8% borrowing cost.
In February, the Avalon Labs also announced that it is considered The release of a public fund dedicated to Bitcoin. Venus Li, co-founder of Avalon Labs, said at the time the fund could be released by seizing a regulation of a US security exception:
“We have spent many years researching how the regulation A was applied to traditional finances and whether it could be a viable path for crypto companies. While successful previous crypto industries is limited, our review of previous SEC -approved cases suggests a viable path to the forward.”
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Centralized and decentralized finances are united
The Avalon Labs product ‘is a Cedefi protocol, somewhere between decentralized finances (DEFI) and centralized finances (CEFI). This category of products – along with their increased control over capital flows and accessions – often there are some benefits to addressing regulatory requirements for integration with CEFI platforms.
Bybit Earn Integration uses Avalon Labs’ 1: 1 Bitcoin-Pegged token FBTC, developed by Defi Protocol Mantle and Bitcoin-centric crypto developer Antalpha Prime. These tokens are then turned into Ethereum and other blockchains.
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A multi-protocol system
The Avalon Labs platform accepts FBTC as collateral and lends it to fixed rates. The borrowed USDT Stablecoin was then deployed in high yield techniques By the Etherna Labs synthetic dollar protocol. The properties that work in strategies include the Etherna USD (USDE) and Etha Staked USD (SUSDE). The claims to the announcement:
“Returns are stable, safe, and passed back to users who earn users – making bitcoin is a productive owner while maintaining simplicity and danger control.”
In other words, the Avalon Labs serve as a bridge between the Bybit and the potential yield of the Ethhena Labs’ protocol. Avalon Labs described it as a “Cefi to Defi” bridge.
The news follows Ethena raising $ 100 million in late February to deploy a new blockchain and Launch a token dedicated to traditional finance. In January, Etherna too Revealed plans to roll out iusdeA product that is identical to USDE but designed for regulated financial institutions.
Bybit did not respond to Cointelegraph’s questions by publishing.
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