Bybit announces the debut of Bybit Lending, a cryptocurrency value-added product that allows customers to earn interest on idle bitcoins. This will allow users to deposit unused cryptocurrencies into asset pools, which are then lent to borrowers for hourly interest.
Bybit is a cryptocurrency derivatives exchange founded in 2018. It offers trading in perpetual swaps, futures contracts, and options contracts for several cryptocurrencies. It features a customizable user interface, advanced order types, and risk management tools. Additionally, it offers a mobile app and educational resources.
According to Bybit, Bybit Lending will offer hourly interest, starting one hour after the crypto asset is deposited, low risk, and flexible redemptions, allowing customers to earn returns with peace of mind. Loaned assets are kept safe by Bybit’s strict risk management system.
Fees and risk attached to Bybit lending
Furthermore, Bybit Lending will charge a 20% service fee on the interest income generated by loans, while the remaining 80% is distributed based on the proportion of funds lent by lenders in the asset pool.
The APR is an estimated floating rate of return calculated based on lending market conditions and actual interest income and is updated in real-time. Also, upon redemption, the accumulated interest will be paid along with the principal to the Spot Account or Unified Trading Account of the user.
Bybit added that the risk associated with Bybit Lending is generally low, but it is worth noting that users may not be able to redeem their funds immediately if the Loan-to-Pool Ratio of Bybit Lending asset pool hits 100% or the daily redemption limit is reached. However, users can still redeem their funds when capacity becomes available or the next day.