Holders of cryptocurrencies like BTC, ETH, and USDT, to mention a few, now have a chance to earn hourly interest with Bybit. This comes to light following an announcement by Bybit wherein Bybit has introduced a lending protocol that rolls out interest on lending every hour. Bybit Lending requires only minimum lending of 1 hour, based on which lenders can earn passive income on their idle assets.
All they have to do is deposit their cryptocurrencies in Asset Pools and make them available for the borrowers. Interest earned on hourly lending varies depending on the traffic of borrowers. In a scenario where there are no borrowers, the interest rate is likely to slip down 0%. The maximum interest that lenders can earn every hour is 16.46%. However, this depends on how many users are looking to borrow digital assets on an hourly basis.
Idle assets that are deposited in the Asset Pools are then lent out under the supervision of a strict risk management system deployed by Bybit. Borrowers can borrow funds for a specific hour, and it will not affect the peace of mind of lenders.
To clarify, it is mandatory to successfully deposit the idle cryptocurrency in Bybit Lending.
Redemptions are flexible, allowing lenders to redeem their funds any time they want. The redemption will be subjected to the daily limit set by Bybit. Once the redemption is requested, the same will be credited instantly to their accounts without any delay.
Bybit, in the announcement, has said that more details regarding promotions and rewards linked to Bybit Lending will be shared shortly with the community. Members can stay tuned to its official Twitter account or follow the announcement section.
Bybit Lending is currently available on the updated mobile application of Bybit. The platform is expected to launch the lending protocol on its website soon. Bybit Lending has been defined as a cryptocurrency value-added product with variable hourly interests that are determined by market conditions. Assets in Bybit Lending are given out to borrowers who intend to utilize them for the purpose of trading. A trading activity could include Crypto Loans, Margin Lending, and so on. Funds do not flow out of the platform, ensuring their safety for the lender.
Founded in 2018, Bybit has rolled out several attractive features, including, but not limited to, USDT Perpetual, Inverse Perpetual, and Inverse Futures. Information about these features can be read in our Bybit review. Additionally, it covers the details of Perpetual Futures and the Dual Price Mechanism.
Bybit, a crypto derivative exchange, has made this advancement at a time when there is an increasing demand of having a better lending protocol. Lenders look for the safety of their funds and better interest rate. Borrowers, on the other hand, get the option to seek funds to their name for a short time that, starts from 1 hour.