DeFi

Avalon Labs, Bybit Launch Fixed-Rate Bitcoin Lending


  • Avalon is providing institutional Bitcoin lending infrastructure for Bybit Earn.
  • The fixed-rate lending system enables stable yield via FBTC-backed DeFi strategies.
  • The partnership bridges CeFi and DeFi to unlock higher, predictable Bitcoin yields.

Crypto infrastructure provider Avalon Labs has announced a partnership with exchange Bybit. With this new partnership, the exchange is bringing its institutional Bitcoin lending services to Bybit’s financial platform.

The collaboration powers a new stable income product through Avalon’s fixed-rate lending system. This allows for on-chain arbitrage strategies that generate yield for Bybit customers and at the same time maintain their Bitcoin exposure.

Avalon Labs’ institutional layer is now live on @Bybit_Official Earn, redefining how Bitcoin lending and yield work within the centralized exchange ecosystem.

By integrating with Bybit Earn, Avalon unlocks new yield opportunities for Bitcoin holders by arbitraging our fixed-rate… pic.twitter.com/bX4DWZVyA5

— Avalon Labs 🎩🔮 (@avalonfinance_) April 14, 2025

“Avalon Labs’ institutional layer is now live on Bybit Earn, redefining how Bitcoin lending and yield work within the centralized exchange ecosystem,” Avalon Labs announced on X. The partnership creates what the company describes as a “seamless CeFi-to-DeFi bridge” that unlocks new yield opportunities for Bitcoin holders through Avalon’s institutional borrowing layer.

The mechanics of generating the yield entail a multi-stage process that utilizes Avalon infrastructure and DeFi integrations. At the heart of the system is FBTC, a 1:1 Bitcoin-pegged token with more than $1.25 billion in total value locked (TVL) backed by Mantle and Antalpha Prime. This tokenized Bitcoin form injects native Bitcoin liquidity into DeFi ecosystems on Ethereum and other blockchain networks.

In Avalon’s platform structure, FBTC exists as collateral for borrowing at locked interest rates. The borrowed USDT is thereafter invested in high-yielding plays using assets such as USDe and sUSDe from Ethena Labs.

“Returns are secure, steady, and reimbursed back to Bybit Earn users—so Bitcoin becomes an asset-generating asset while having ease and risk management,” Avalon Labs broke down. In return for the Bybit audience, the arrangement provides exposure to superior Bitcoin yields without requiring complex technical understanding of DeFi tokens or direct exposure to smart contract risk.”

Related: What Are Bitcoin ATMs? How to Use BTM to Buy Bitcoin?

Avalon Labs has created an expanding footprint in the Bitcoin financialization sector. It has already developed its market share in Bitcoin-backed stablecoins and on-chain lending solutions. This collaboration with Bybit is a significant expansion of their institutional offerings that can bring their infrastructure to one of the largest cryptocurrency exchanges globally.

For institutional holders of Bitcoin, services like that provided by Avalon offer potential solutions to the opportunity cost of capital tied up in non-yield-bearing Bitcoin positions. Through the establishment of fixed-rate lending markets and arbitrage opportunities, the platform enables the establishment of predictable returns that can be integrated into overall portfolio strategy.




Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button