Avalon Labs Unveils Bitcoin Yield Solution Through Bybit Earn Partnership
- Avalon Labs partners with Bybit Earn to offer a stable Bitcoin yield through $FBTC.
- $FBTC enables Bitcoin lending on Avalon Labs with predictable returns for users.
- Avalon raises $2B in credit, fueling innovation in Bitcoin-backed lending solutions.
Avalon Labs has partnered with Bybit to include its lending protocol in the exchange’s Bybit Earn platform. Through this collaboration, Bybit users can earn yield from Bitcoin (BTC) while arbitraging Avalon’s fixed-rate institutional borrowing layer.
The integration aims to reshape how Bitcoin holders earn yield within centralized finance (CeFi). This collaboration bridges the gap between centralized and decentralized finance while allowing Bitcoin holders to yield higher investment returns.
How Avalon Labs’ Yield Engine Works
Avalon Labs employs a unique mechanism to enhance Bitcoin yield generation. Through its partnership with Bybit Earn, it aims to provide Bitcoin holders with a fixed-rate borrowing system that generates stable yields from its yield engine. The core component of this system works through $FBTC, which functions as a 1:1 Bitcoin-pegged token equivalent to Bitcoin.
With over $1.25 billion in Total Value Locked (TVL), $FBTC allows Bitcoin to be used as collateral within the Avalon Labs platform. After Bitcoin converts into $FBTC, users can be lent fixed-rate loans with returns for lenders and borrowers. The platform deploys borrowed USDt (Tether) through Ethena Labs’ synthetic dollar protocol to generate high yields.
The partnership with Ethena Labs enables a stable yield generation process and advanced strategic operations that deliver financial liquidity. The high yield operations funding Bybit Earn functions generate returns that users can receive safely as Bitcoin becomes a productive asset.
Avalon’s Role in CeDeFi and the Future of Bitcoin Yield
The partnership between Avalon Labs and Bybit Earn presents a rising approach to CeDeFi by merging decentralized financial and centralized finance advantages. Through its hybrid framework, Avalon creates a flow of capital that maintains regulatory requirements.
This provides both institutional and individual investors access to Bitcoin yield opportunities without the need for direct exposure to complex DeFi protocols. Through this integration, Avalon Labs demonstrates its dedication to developing new opportunities within the crypto finance industry. Avalon Labs secured at least $2 billion in credit funding to manage protocol operations in March.
Through its substantial investor support, Avalon maintains its ability to develop new solutions and deliver top-quality liquidity services to institutional debtors. The fixed rate of 8% for USDt borrowing against Bitcoin deposit positions Avalon as a top choice in the cryptocurrency lending market.
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