Once upon a time in the land of Crypto, a cheeky little exchange named Bybit decided to team up with a rather clever lending wizard called Avalon. Together, they concocted a magical potion that promised to sprinkle Bitcoin yield upon their users! 💰✨
On a sunny April 14, Avalon Labs announced with a flourish that their marvelous CeDeFi protocol would now join the Bybit Earn party. This means that users could earn a delightful yield from their Bitcoin (BTC) by playing a game of arbitrage on Avalon’s fixed-rate borrowing layer. How splendid! 🎉
In a rather impressive feat, Avalon Labs revealed they had conjured up a whopping $2 billion worth of credit! This magical product allows institutional borrowers to sip on USDt (USDT) liquidity without having to part with their precious Bitcoin, all for a fixed 8% borrowing cost. Quite the bargain, wouldn’t you say? 🤑
But wait, there’s more! In February, Avalon Labs hinted at a grand plan to issue a Bitcoin-backed debt-focused public fund. Venus Li, the co-founder, declared that they had spent years pondering the mysteries of Regulation A in traditional finance, hoping it could be a golden ticket for crypto companies. “We’ve seen some success stories, but they’re as rare as a unicorn!” she exclaimed. 🦄
When CeFi and DeFi Dance Together 💃🕺
Avalon Labs’ creation is a delightful blend of CeFi and DeFi, a CeDeFi protocol that straddles the line between the two worlds. With their clever control over capital flows, they’ve found a way to charm the regulators while keeping the fun alive! 🎈
The Bybit Earn integration uses Avalon’s shiny 1:1 Bitcoin-pegged token, FBTC, crafted by the DeFi wizards at Mantle and Antalpha Prime. These tokens are then whisked away onto Ethereum and other blockchains, like magic beans sprouting into a beanstalk! 🌱
A Symphony of Protocols 🎶
Avalon Labs’ platform welcomes FBTC as collateral and lends it out at fixed rates, like a generous fairy godmother. The borrowed USDt stablecoin is then sent off to high-yield adventures through the Ethena Labs synthetic dollar protocol. The assets in this grand escapade include Ethena USD (USDe) and Ethena Staked USD (sUSDE). The announcement cheerfully claims:
“Returns are stable, secure, and passed back to Bybit Earn users—making Bitcoin a productive asset while maintaining simplicity and risk control.”
In simpler terms, Avalon Labs acts as a bridge, connecting Bybit to the treasure trove of yield-earning potential from Ethena Labs. They call it a “CeFi to DeFi” bridge, but we know it’s really a magical pathway! 🌈
As if that wasn’t enough, Ethena raised a staggering $100 million in late February to launch a new blockchain and a token aimed at traditional finance. And in January, they announced plans for iUSDe, a twin of USDe, but tailored for the fancy folks in regulated financial institutions. How posh! 🎩
Alas, Bybit was too busy counting their coins to respond to CryptoMoon’s inquiries by publication time. Oh, the drama! 😲
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2025-04-14 15:47