KEY TAKEAWAYS
- Bybit has increased the APR for Bitcoin in its On-Chain Earn program from 1.15% to 2%, a 74% rise.
- This enhancement is achieved through a partnership with Function Bitcoin, utilizing a hybrid consensus mechanism.
- The program offers fixed returns and an Auto-Reinvest option, simplifying the staking process for users.
Bybit, recognized as the world’s second-largest cryptocurrency exchange, has announced a significant enhancement to its On-Chain Earn program. The annual percentage rate (APR) for Bitcoin (BTC) has been increased from 1.15% to 2%, marking a 74% rise in earning potential. This enhancement is made possible through an expanded partnership with Function Bitcoin (FBTC), a protocol that enhances Bitcoin’s functionality with a hybrid consensus mechanism and smart contract capabilities.
The upgraded offering aims to transform Bitcoin from a passive holding into an active yield-generating asset. By leveraging optimized decentralized finance (DeFi) protocols, Bybit seeks to deliver higher returns while maintaining security and reliability. The total capacity for BTC staking has also been increased from 1,250 BTC to 2,000 BTC to meet growing demand.
Fixed Returns Amid Market Volatility
Bybit On-Chain Earn provides fixed returns for users seeking stability in volatile markets. Eligible users can stake their BTC with a fixed 45-day period, guaranteeing a 2% APR. The service also features an Auto-Reinvest option, allowing for seamless compounding of principal and rewards. Deposits and interest payments are denominated in BTC, powered by the FBTC protocol.
This intuitive staking solution simplifies the complexities of traditional staking by eliminating the need to manage gas fees, node operations, and reward distribution. Users can stake popular Proof-of-Stake tokens with ease, enjoying a frictionless experience while contributing to the future of blockchain networks.
For more details on qualification rules and eligibility, users are encouraged to visit the official announcement here.
Why This Matters: Impact, Industry Trends & Expert Insights
Bybit has increased the Bitcoin APR for its On-Chain Earn program from 1.15% to 2%, a move supported by its partnership with Function Bitcoin, enhancing Bitcoin’s yield potential through DeFi protocols.
Recent industry reports indicate a projected 30% increase in staking participation by 2025 due to institutional inflows and regulatory approvals. This aligns with Bybit’s initiative to boost Bitcoin staking capacity, reflecting a broader trend of transforming Bitcoin into an active yield-generating asset.
According to Rich Rines, a significant portion of active Bitcoin addresses may soon engage with Bitcoin scaling solutions, enhancing liquidity in staked Bitcoin assets. This supports Bybit’s enhancement of its On-Chain Earn program, which aims to make Bitcoin a more active asset in the DeFi space.
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