ByBit taps into crypto lending
- ByBit users will now be able to earn interest payouts on idle cryptocurrency assets.
- The ByBit Lending will offer hourly paid interest and no deposit periods for redemptions and deposits.
- The lending service will serve as an intermediary between borrowers and lenders.
Popular cryptocurrency exchange ByBit has launched its lending service arm, ByBit Lending, which will allow users to earn high-interest payouts on their idle cryptocurrency assets.
The new product offers an additional way for users to capitalize on their crypto investments and generate passive income.
ByBit now joins the likes of Binance, OKX, and KuCoin in offering lending services. The US-based exchange Coinbase abandoned plans to launch lending services after the US Securities and Exchange Commission (SEC) rendered the offering a security.
Passive income opportunity for ByBit users
ByBit Lending offers a high APR, offering users an opportunity to earn some passive income on the crypto assets they are holding instead of letting them sit idle on the exchange.
Interestingly, the interest on the crypto assets deposited for lending will be paid hourly with the users having the flexibility to deposit and redeem their assets at any time. This makes it easy for users to take advantage of the crypto market fluctuations.
The exchange has made the lending service accessible to both novice and experienced clients through a simple four-step process. The deposited assets will remain secure throughout the lending process, thanks to the exchange’s advanced risk management systems.
Besides benefiting lenders, borrowers will also have the opportunity to take up crypto loans for various earning strategies including trading perpetual contracts and capitalizing on spreads on the ByBit Earn. Borrowers will, however, be required to deposit collateral equal to or greater than the loan they intend to take.