15. How to Use Liquidity Mining on Bybit

Liquidity mining allows participants to provide some of their crypto assets to various liquidity pools, from which they’re rewarded with tokens and fees.

 

Investors those whom are risk-tolerant and are looking for long-term stable yield can profit from Bybit Liquidity Mining by using leverage to obtain higher returns.

*Please note that leveraged liquidity mining may entail liquidation risks. 

 

 

 

 

 

 

 

4 Steps to Participate in Liquidity Mining

 

 

1. Log in to Bybit ➡︎ Click [Earn] ➡︎ [Liquidity Mining]

 

Log in to your Bybit account and go to [Liquidity Mining] under [Earn].

 

 

 

2. [Liquidity Mining] ➡︎ Select Pool ➡︎ Select Cryptocurrency

 

Select a pool and cryptocurrency to invest. The APY is shown next to the trading pairs.

 

 

3. Enter [Amount] ➡︎ Adjust Leverage ➡︎ Click [Add Liquidity]

 

Enter the subscription amount and adjust the leverage. Click [Add Liquidity] to confirm your subscription.

 

 

 

*The actual amount of liquidity that’s been added to the pool is calculated with leverage

 

Yield Formula

 

Yield = (Liquidity/Total Pool Liquidity) × (Total Yield from the Pool)

 

 

ex) BTC price is $20,000, and Trader A adds 0.1 BTC into the BTC-USDT liquidity pool with 2x leverage at 12AM (midnight) UTC.

 

Trader A's principal will be $2,000 (0.1 × 20,000), and their liquidity will be $4,000 (2,000 × 2). If the total amount of liquidity in the pool is $1,000,000 and its total yield in the last 24 hours is 1,000 USDT, Trader A can claim 4 USDT (4,000/1,000,000 × 1,000) at 12AM (midnight) UTC on the next day.