Bybit, the world’s second-largest cryptocurrency exchanges by trading volume. has made its proprietary token, BYUSDT, available to eligible retail users after an initial launch phase restricted to VIP clients, according to an announcement shared with Finbold on January 16.
The token allows users to convert USDT Flexible Easy Earn balances into a tokenized asset that can be used as margin for trading while continuing to generate yield.
BYUSDT features and how it works
BYUSDT enables participants to earn yield through USDT Flexible Easy Earn while simultaneously using the token as margin within Bybit’s Unified Trading Account (UTA). The exchange said the token maintains a 100% collateral value ratio for margin trading, allowing users to access liquidity without giving up yield generation.
The token can be swapped on a one-to-one basis with USDT Flexible Easy Earn, with no lock-up periods and no depegging risk. Bybit said there are no minting or redemption fees for a limited period following launch, although certain service fees may apply when swapping or redeeming the token. Manual USDT repayments in the UTA using BYUSDT, as well as liquidation settlements, incur no fees and convert at a 1:1 rate.
According to the exchange, users can deposit USDT into Flexible Easy Earn to begin earning yield and then swap those assets into BYUSDT within their UTA for use as trading margin. Rewards accrue hourly based on effective BYUSDT holdings and are distributed daily to users’ UTAs in BYUSDT.
BYUSDT is available to users eligible for Bybit Savings services who hold a Unified Trading Account and have completed Identity Verification Level 1. Islamic accounts and accounts with active institutional loans are not supported, and additional restrictions apply.
Full terms and conditions are available on Bybit’s website.
Featured image via Shutterstock.
Source: https://finbold.com/bybit-opens-byusdt-to-retail-users-following-vip-rollout/
