Bybit has raised the stakes, literally. The exchange never ceases to innovate, and just launched an industry-first crypto loans for launchpools, dubbed Borrow & Stake.
This function gives you the ability to multiply your staking power by borrowing up to 3x your principal, allowing you to earn greater rewards with minimal upfront capital.
Boost Earnings with Borrow & Stake
If you’ve ever felt limited by how much you could stake, Borrow & Stake changes the game. This feature introduces proper capital efficiency to Launchpool staking. By using leverage, you can borrow additional tokens up to three times what you hold, and stake a much larger amount, potentially boosting your airdrop earnings significantly.
Why Borrow & Stake?
- Amplified Rewards: Bigger stake, bigger share in Bybit’s continuous launchpool events.
- Lower Entry Barriers: Don’t have enough capital? Borrow what you need and get started.
- Simple and Seamless: Just a single click to borrow and stake, no jumping through hoops.
- Smart Risk Controls: Assets are automatically unstaked if your risk level rises, ensuring safety and transparency.
Step-by-Step: How to Start Borrow & Stake on Bybit
Getting started with Borrow & Stake is fast and easy. Here’s how you can join the action today:
- Check Eligibility: Before staking, ensure you meet the eligibility requirements outlined on the Launchpool FAQ page. TL;DR: be in a supported country (excludes EEA for now) and complete KYC.
- Borrow and Stake in One Click: Go to the Bybit Launchpool, choose your preferred staking asset (typically USDT, MNT, and whichever asset is the event for), and enable Borrow & Stake. Set your amount and confirm the order.
- Redeem and Reap the Rewards: Once your staking period ends, Bybit will first use your unstaked assets to cover any borrowed amounts and interest. The remaining tokens you earn will be credited to your wallet.
Is Loaning Crypto for Launchpools Worth It?
It truly depends on each individual event, but typically yes. In a currently live launchpool for Zora, the APRs are 663% for ZORA, 38% for Mantle, and 36% for USDT staking. You can always view these yields for all current and past events, and do the quick math by yourself to ensure profitability.
Loaning cryptocurrency typically has much lower APRs. Depending on asset, it can be around 10% APR. For instance, at the time of writing this, borrowing USDT has a 5% APR, while borrowing MNT has a 21% APR. In the end, by borrowing assets for launchpool events you can still earn a higher return.
Keep in mind that each event has staking caps. Typically, standard users can stake 2,000 USDT. New users get a 20% bonus (2,400 USDT), and VIP users can get a 50% bonus (3,000 USDT).
For traders who always want their capital available for trading, but wish to participate in launchpools regardless, the new Borrow & Stake feature is perfect!
Capital Efficiency Meets Crypto Opportunity
Borrow & Stake is more than a feature, it’s a strategic tool. It offers a smarter way to participate in high-yield staking events without tying up large amounts of capital.
Whether you’re new to Launchpools or a seasoned staker, Borrow & Stake gives you the edge. Maximize your earning potential, stretch your assets, and take full advantage of Bybit’s profitable staking ecosystem.
Take Action: Stake Smarter Today
Bybit constantly runs launchpool events. By having even a small amount of USDT or MNT on the exchange, you can consistently get some of the best staking returns in the industry at practically zero risk.
By introducing Borrow & Stake, getting an even bigger return is easier than ever. The results and profitability can vary, but you’re still getting free airdrops with minimal effort. With Borrow & Stake, Bybit once again proves there is room for innovation.
