To bring Bitcoin yield opportunities, via Bybit’s Bybit Earn platform, to its users, Bybit has implemented Avalon Labs’ “CeFi to DeFi” bridge. This partnership brings together CeFi with DeFi, utilizing Avalon Labs’ proprietary protocol built on their unique Avalanche Infrastructure. Avalon Labs is the connective tissue between Bybit and the yield-earning promise of Ethena Labs’ protocol.
Avalon is an institutional focused CeDeFi protocol that helps connects institutional borrowers with USDt liquidity. This structure allows them to continue holding Bitcoin on their balance sheet, while borrowing at a stable 8% cost. The platform accepts FBTC, a 1:1 Bitcoin-pegged token developed in collaboration with DeFi protocol Mantle and Bitcoin-centric crypto developer Antalpha Prime, as collateral for these loans.
FBTC and Institutional Borrowing
Avalon Labs has created the FBTC token to simplify Bitcoin’s functionality within its ecosystem. Through Avalon Labs, the company has raised at least $2 billion in credit. Their platform accepts FBTC as collateral and provides fixed-rate loans, enabling users to earn yield on Bitcoin by tapping into the fixed-rate institutional borrowing layer. This model allows institutional borrowers to obtain necessary liquidity without needing to sell their Bitcoin holdings.
It just got easier to maximize your crypto profits with Bybit Earn! This melding allows you access to yield-generating strategies with assets such as Ethena USD (USDe) and Ethena Staked USD (sUSDE). As a result, Bybit users can now participate in Bitcoin yield opportunities by using Avalon Labs’ platform.
Ethena Labs Partnership
Avalon Labs has smartly aligned with lending protocol Ethena to bring even more Bitcoin yield-earning capabilities to users. Avalon Labs is partnering with Ethena to bring users market-leading, total-return-oriented yield strategies. This partnership amplifies the potential returns for participating users of Bybit Earn.
Avalon Labs’ assets used in their liquidation strategies are Ethena USD (USDe) and Ethena Staked USD (sUSDE). This partnership further solidifies Avalon Labs’ commitment to offering the most innovative and diversified yield-earning opportunities in the CeDeFi space.
Regulatory Landscape and Future Developments
Avalon Labs is deep in the process of figuring out acceptable regulatory pathways for its fund offerings. 3x co-founder Venus Li explained that the fund could actually be released by using a Regulation A US securities exception to issue the fund.
Avalon Labs has raised $100 million so they think they can deploy a new blockchain. This new initiative will introduce a new token focused on traditional finance. Avalon Labs has big plans to grow its footprint across both the DeFi and TradFi sectors. Each of these initiatives was meant to signal that ambition.
