Bybit exchange has partnered with Avalon Labs to integrate its CeDeFi protocol into the Bybit Earn platform, allowing users to earn yield on Bitcoin via fixed-rate institutional lending and DeFi strategies. The integration permits users to utilize Bitcoin for yield generation by arbitraging on Avalon’s institutional borrowing layer, which offers loans at a fixed 8% borrowing cost, allowing institutional borrowers to access USDt liquidity without needing to liquidate their Bitcoin holdings. Avalon Labs' product utilizes FBTC, a Bitcoin-pegged token, enabling users to lend and borrow effectively. The system involves collateral lent at fixed rates while the borrowed stablecoins are further used in the Ethena Labs synthetic dollar protocol. This innovations highlights the seamless connection between centralized and decentralized finance, emphasizing regulatory compliance and operational efficiency. Avalon’s model is positioned to enhance the productivity of Bitcoin as an asset while managing risk and simplicity, illustrating a collaboration aimed at creating attractive financial products for users.

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