Cryptocurrency exchange Bybit has announced the launch of its new Liquidity Mining, allowing users to have access to three liquidity pools: Bitcoin (BTC), Ethereum (ETH), and BitDAO.
The liquidity will be paired with Tether (USDT) and will enable users to deposit funds and earn up to 30% APY. They are also going to gain higher rewards when they use up to 3x the leverage. “Liquidity providers in all 160 countries where Bybit operates will be able to add one or both sides of the liquidity pair,” the exchange noted.
The New Pool Will Minimize Risks Of Loss
Bybit is presently the fourth largest crypto derivatives exchange by trading volume. The exchange makes use of an automated market maker (AMM) that provides immediate liquidity. The exchange recently relocated its headquarters from Singapore to Dubai, UAE.
The pool is set in such a way that it rebalances the assets and minimizes the risk of loss. Following the launch of the liquidity mining, liquidity providers can earn rewards in USDT which will be reinvested in the pool or sent to their accounts.
Chief Executive Officer of Bybit, Ben Zhou, commented on the development. He stated that the new liquidity pool is another milestone for the company as it shares its growth opportunities with its community that believes in the future of personal financial freedom and Decentralized Finance (DeFi).
Bybit Offers Protection Against Market Manipulation
Bybit says the new pool will allow its users to swap between assets without any hassles and without any need to exit the platform before the swap.
Also, it will enable users to easily use leverage to increase their share of the pools to make the most of their yields.
The exchange’s leverage feature will allow users to use their funds as collateral to gain great yields. This means they can protect themselves against excessive loss, enabling them to manage risks effectively. Bybit stated that the multi-layers liquidation protocols will ensure fairness and safety across all Bybit trades.
The platform is also designed to provide strategies that will help users to minimize their losses and lock in profits during trades. The design of the platform also offers some kind of protection against market manipulation.