Bybit, one of the largest crypto exchanges globally by volume, has introduced a centralized exchange (CEX) integrated liquidity farm on its Bybit Alpha platform. This development is positioned as an industry first, aimed at lowering the technical barrier to entry for decentralized finance (DeFi). The feature allows eligible users to become liquidity providers (LPs) and access on-chain yield opportunities directly from their Bybit Unified Trading Account (UTA) without requiring wallet setup, private key management, or paying network gas fees.
The new product utilizes the Concentrated Liquidity Market Maker (CLMM) model, which enhances capital efficiency by enabling LPs to allocate funds within specified price ranges. This mechanism is designed to generate returns primarily from trading fees proportional to the LP’s share of active liquidity.
This move underscores the continued convergence between CeFi and DeFi, as major centralized platforms seek to integrate the yield potential of decentralized protocols into a simplified, secure user experience. By eliminating the complexities typically associated with on-chain farming, Bybit is positioning itself to capture a larger share of yield-seeking retail and institutional capital. Users benefit from the exchange’s risk controls and flexibility, with no lock-up periods for deposits and withdrawals of supported assets like USDT, USDC, SOL, and bbSOL.
