Bybit has partnered with Avalon Labs to integrate its CeDeFi protocol into the Bybit Earn platform, allowing users to earn Bitcoin yield via fixed-rate institutional lending and DeFi strategies. This new feature enables users to benefit from a fixed 8% borrowing cost without needing to liquidate their Bitcoin holdings. Avalon Labs has raised a minimum of $2 billion in credit, enhancing their ability to provide liquidity. The integration uses a 1:1 Bitcoin-pegged token, FBTC, developed by Mantle and Antalpha Prime, which facilitates collateralized lending at fixed rates. The borrowed USDt stablecoin is then leveraged through Ethena Labs' synthetic dollar protocol. This collaboration signifies a bridge between centralized finance (CeFi) and decentralized finance (DeFi), promising stable and secure returns for Bybit Earn users. The initiative follows other recent developments, including Ethena's $100 million funding to deploy a new blockchain, further emphasizing the growing intersection of traditional finance and blockchain innovations.

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