Bybit Introduces BYUSDT, Allowing Easy Earn Assets to Function as Trading Margin While Retaining Yield

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has launched BYUSDT, a proprietary token developed entirely in-house by Bybit and available exclusively to VIP users, allowing eligible participants to convert USDT Flexible Easy Earn balances into trading margin while continuing to earn yield.

BYUSDT represents a 1-to-1 claim on users’ USDT held in Flexible Easy Earn and carries a 100 percent collateral value ratio for margin trading within Bybit’s Unified Trading Account. The structure is designed to let VIP users keep their yield-generating position in place while deploying the same balance as trading margin, rather than choosing between liquidity and returns.

BYUSDT can be swapped at a fixed 1-to-1 rate with USDT Flexible Easy Earn positions with no lock-up period and no depegging, since the conversion rate remains constant. Bybit is waiving minting and redemption fees for a limited period after launch, although a service fee may apply when swapping or redeeming BYUSDT on the BYUSDT page, including during yield conversion. Manual USDT repayments in the Unified Trading Account using BYUSDT, as well as liquidation settlements, incur no fee and convert 1-to-1 back to USDT.

The yield mechanism for BYUSDT follows the same annual percentage rate structure as USDT Flexible Easy Earn, excluding any platform reward APR. Rewards accrue hourly based on effective BYUSDT holdings, and only balances held for the full hour are counted. Yield is distributed once per day, at around 12:30 a.m. UTC, and is paid in BYUSDT to the user’s Unified Trading Account. If a swapping fee applies, it also applies to the yield conversion.

The BYUSDT product will be available starting 2 p.m. UTC Dec. 12, enabling eligible VIP users to mint, hold and use BYUSDT in line with product terms and platform rules. A separate BYUSDT Trading Competition with a total prize pool of 700,000 USDT is scheduled to begin at 10 a.m. UTC Dec. 15. The competition is governed by independent campaign rules and eligibility criteria, and only trading activity during the official competition period will be counted toward rewards.