Bybit has formed a strategic partnership with Avalon Finance, an emerging platform for Bitcoin capital markets, to offer users a new opportunity to generate yield on BTC through a seamless integration between CeFi and DeFi.
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A new era for returns in Bitcoin thanks to Bybit and Avalon
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The agreement between Bybit, one of the leading global cryptocurrency exchanges, and Avalon, leverages the growth of DeFi to create a solution that allows users to access yield products in Bitcoin that were once more difficult to reach for traditional investors.
The cornerstone of this collaboration is an interoperability bridge developed by Avalon, which allows Bybit’s CeFi users to easily participate in DeFi products built on Babylon’s Layer 1 Bitcoin-native.
In other words, it is an architecture that allows Bybit users to invest their Bitcoin in DeFi protocols without having to move them directly to decentralized wallets, thus maintaining the convenience and security of the centralized interface.
Thanks to this integration, Bybit users can simply access the Earn functionality on the platform to view yield offers from Avalon, select the preferred option, and deposit their BTC directly from the exchange.
Avalon, through its infrastructure, takes charge of these assets and allocates them within native yield strategies on Bitcoin, guaranteed by Babylon layer technology.
This operation occurs without the user having to interact directly with DeFi wallets or face the technical hurdles that usually accompany the use of decentralized applications.
Bybit and Avalon thus simplify access to DeFi, lowering the barriers for a new generation of investors in criptovalute.
Advantages for investors
One of the peculiarities of the Avalon protocol is its focus on native decentralized finance on Bitcoin.
Traditionally, a large part of DeFi developments has focused on blockhain such as Ethereum or EVM-compatible Layer 2 solutions.
Avalon, on the other hand, leverages the native Bitcoin network, utilizing the capabilities offered by Babylon. That is, a Layer 1 blockchain designed to enable decentralized financial applications directly on Bitcoin.
Using Babylon, Avalon allows users to participate in DeFi strategies without having to compromise the security of the Bitcoin network.
The integration with Bybit now allows a much wider audience to tap into these opportunities. Thus making DeFi on Bitcoin a concrete and accessible possibility.
The union between Bybit and Avalon brings several benefits to users. Firstly, it allows Bitcoin holders to earn passive income without having to leave the Bybit ecosystem.
Furthermore, it eliminates the complexity of DeFi onboarding, which often discourages many investors due to issues related to usability, interoperability, and security.
Another evident advantage is transparency. All Avalon activities are publicly viewable on-chain and regulated through the logic of smart contracts, offering users a higher level of assurance compared to traditional CeFi solutions.
Finally, the collaboration will expand the range of offerings available in the Bybit Earn section, further strengthening the exchange ecosystem.
The operation also represents an important signal in the direction of the integration of the CeFi and DeFi worlds.
Facing the growing demand for high-yield products and the desire to maintain control over their assets, numerous industry players are seeking hybrid solutions capable of offering the best of both worlds.
This bridge between centralized platforms and decentralized protocols not only improves the usability of decentralized finance, but also contributes to its large-scale adoption, overcoming some of the obstacles that have so far limited its spread.
The key role of Babylon in Avalon’s vision
The choice to build Avalon on Babylon is not random. Babylon represents one of the most promising innovations to expand Bitcoin’s functionalities beyond the simple store of value.
Its consensus and governance model is designed to integrate deeply with Bitcoin’s security. Thus making the execution of smart contracts and sensitive operations in the DeFi realm secure.
Avalon leverages this infrastructure to offer yield strategies based exclusively on data and conditions that are verifiable on-chain.
This approach, in addition to offering benefits in terms of transparency, drastically reduces the risks associated with human errors or abuses of power in centralized systems.
For its part, Bybit once again confirms its strategy of infrastructure expansion and innovation. Specifically, focusing on offering increasingly sophisticated services to compete at the top of the global exchange market.
In a market where differentiation also involves the integration of the most advanced technologies, the partnership with Avalon represents a crucial piece.
Bybit is no longer just a trading platform. Rather, it is building an integrated ecosystem capable of serving the diverse needs of the crypto community: from trading, to staking, to simplified access to DeFi.
The collaboration between Bybit and Avalon Finance marks a decisive moment for digital finance.
Integrating native BTC DeFi within a CeFi platform radically simplifies the user experience. Thus breaking down barriers and making yield opportunities more accessible.
For investors, especially those less experienced, it represents a concrete opportunity to start making their Bitcoin profitable in a safe and transparent way, with the familiarity of a centralized environment but the efficiency and decentralization of the blockchain Bitcoin.
This new bridge between seemingly distant worlds could prove to be one of the key solutions for the mass adoption of DeFi on Bitcoin, bringing long-term benefits to the entire crypto ecosystem.