The ByBit community was delighted to announce that the lending platform will allow users to earn extra interest from their unused assets. The interest generated from the platform will be reimbursed on an hourly basis.
Features of ByBit Crypto Lending Platform
After analyzing the uncertainty in the crypto market and price volatility, the team behind the ByBit lending platform activated the withdrawal and deposit mode on the platform. The activation of the features mentioned above aimed at allowing the user to have maximum control of their assets at any time.
The development of ByBit lending was linked to the existing state-of-the-art risk management tools to improve the privacy and security of the user assets. Besides the robust ByBit lending security protocols, the crypto exchange developed procedures for accessing the new product.
During the launch, the ByBit team explained to the customers the four aim steps for accessing the lending platform.Before accessing the ByBit lending platform, beginner and intermediate users were advised to review the procedures on the website and on the mobile application version 4.16.
The developers integrated the lending procedures on the platform to allow the user to make informed decisions concerning acquiring credit services.
Advantages of ByBit Lending Platform
In addition, the ByBit team developed a shared pool where the users can earn interest by investing their idle assets. At the initial development stage of the ByBit lending platform, the crypto exchange explored multiple strategies to support the borrowers.
The lending platform integrated perpetual contract and ByBit earn platform that the borrowers can opt to invest in their loan and generate substantial returns. The developers also adopted loan security protocols to ensure ByBit assets are safe and secure.
In the latter the crypto exchange highlighted the requirements to qualify for a loan. Firstly, borrowers are required to request for a loan of more than the actual amount to ensure the capital meets its intended purpose. Reflecting on the main objective of the lending platform ByBit aimed at addressing the current challenges battling the debtors and creditors in the crypto sector.
Beyond this, the crypto exchange has harnessed effective measures to support ByBit’s Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. During the development of ByBit lending services the proof-of-reserves (PoR) requirements were observed to meet global security standards.
Measures Adopted by ByBit to Support Compliance
Moreover, the developers utilized emerging technologies to uphold the transparency of the ByBit lending platform. An official announcement from ByBit chief executive Ben Zhou revealed that the new product aims to provide users with several ways to earn from passive income.
Zhou was delighted to announce that the ByBit lending platform will provide users with endless opportunities to borrow from other liquidity providers. He elaborated on the key features of the new platform, including the trading services and APR elements that will bolster the customer’s value.
In his May 2 address, Zhou confirmed that the ByBit lending platform would allow users to maintain a desirable capital efficiency from unused crypto assets. The new platform will support ByBit to push the adoption of Web3 by improving accessibility to crypto assets.
Review of Crypto Firms with Lending Facilities
Following the successful launch of the new product, ByBit joins other crypto firms providing the user with various interest-earning lending services. In 2022 the largest crypto exchange by daily trading volume, Binance, launched an earn-interest platform for crypto assets.
The launch of the Binance platform inspired KuCoin to provide crypto investors with lending services for specific digital assets. The launch of crypto-related lending facilities inspired crypto exchange OKX to introduce a unique platform that offers secure loans on deposited tokens.
However, after crypto lending facilities gained traction the US Securities and Exchange Commission adopted restrictive measures to flee noncompliant firms. In 2021 Coinbase suspended the launching of its lending platform due to regulatory pressures.
On the other hand, the San Francisco crypto exchange Kraken provided the user with crypto staking services which contravened the SEC regulation in 2022. The non comformity with the law subjected Kraken to potential legal action that resulted to settlement of $30 million in court fines in February 2023.