Bybit has rolled out a new product called BYUSDT. This allows eligible VIP customers to convert their USDT Flexible Easy Earn balances into trading margin without giving up the yield their balances generate. This token was developed entirely in-house by the exchange, represents a direct 1:1 claim against USDT in users’ Flexible Easy Earn accounts, and is treated at a 100 percent collateral value ratio within Bybit’s integrated trading account, allowing VIP traders to continue earning while using the same funds to support their trades.
Unlike many synthetic margin solutions, BYUSDT can be exchanged for USDT Flexible Easy Earn at a fixed 1:1 rate and there is no lock-up period. According to Bybit, the exchange rate never changes, eliminating the risk of depegging. Although the exchange is waiving minting and redemption fees for a period of time after launch, service fees may still apply when exchanging or redeeming BYUSDT from the product page. Manual repayments and clearing payments using BYUSDT in the integrated trading account will be converted to USDT at parity without any fees.
The yield structure mirrors that of USDT Flexible Easy Earn (excluding platform rewards APR). Rewards will accrue hourly based on valid BYUSDT holdings, only full time balances will be counted, and will be distributed in the form of BYUSDT deposited into the User’s integrated trading account once a day at approximately 12:30 AM UTC. Bybit points out that if swapping fees apply, they also apply to yield conversion.
trading with yield
BYUSDT will be available to eligible VIP users from December 12th at 2pm (UTC), and following the product launch, Bybit will be holding a BYUSDT trading contest from December 15th at 10am (UTC). The total prize pool for the contest is 700,000 USDT and is governed by separate campaign rules and eligibility criteria. Only transactions executed during the official contest period are eligible for rewards.
The move is another example of Bybit building a product that bridges passive yield and active trading, as part of a broader push by the company to make decentralized finance primitives more accessible to mainstream trading users. Bybit, which serves a global community of over 70 million users and ranks as the world’s second-largest exchange by trading volume, has expanded its Earn and VIP offerings in recent months and implemented an aggressive promotional program to attract liquidity.
For VIP users who manage both lending and trading books, BYUSDT promises a more sophisticated balance between liquidity and returns. This means that instead of having to choose between leaving your funds in a yielding product or withdrawing them and using them as margin, you can maintain yield-bearing positions while using the same funds on your trading desk.
As with any new structured product, traders should consider operational details, such as applicable swapping fees and the competition’s specific campaign rules, before converting funds. Bybit’s BYUSDT arrives amid a wave of product launches across the industry that blend staking, yield, and tradability, demonstrating how exchanges are moving forward in designing ways for customers to optimize capital efficiency without having to close one door and open another.
