FAQ — Liquidity Mining
What is Bybit Liquidity Mining?
Bybit Liquidity Mining refers to liquidity pools that are based on the automated market maker (AMM) model offered by Bybit. You can add liquidity to a pool to become a liquidity provider and earn yield derived from swap fees in the pool.
You may also add leverage to maximize your yield. Please note that leveraged liquidity mining may entail liquidation risks.
Which liquidity pairs does Liquidity Mining support?
Currently, BTCUSDT, ETHUSDT and BITUSDT are supported. Stay tuned for more liquidity pairs.
What tokens does Bybit support for Liquidity Mining?
Currently, USDT, BTC, ETH and BIT are supported.
Are there any fees associated with Liquidity Mining?
Add or Remove Liquidity: Bybit won't charge any fees when you add or remove liquidity. If the liquidity you’ve added exceeds a certain threshold, however, you may experience slippage.
Swap: Bybit will charge a 0.3% swap fee. However, the swap fees earned will be distributed to liquidity providers. Please note that if the liquidity you’ve swapped exceeds a certain threshold, you may experience slippage.
Are there any KYC requirements for Liquidity Mining?
Only individual users who have successfully verified their identity (at least Lv. 1 Basic Verification) can trade Liquidity Mining. To learn more about KYC verification, please refer to the Individual KYC FAQ.
Notes:
— Liquidity mining is not available for business users.
— Subaccounts are not supported.
Is there any risk associated with my principal?
Bybit's Liquidity Mining implements the x × y = k rule to ensure that the product of the quantities of your added tokens remains fixed over time. Liquidity pools, however, may be subject to impermanent loss.
Note: x × y = k, where x and y represent the quantity of each token in the liquidity pool, and k is a predefined constant.
How is my liquidity derived?
Bybit's Liquidity Mining allows you to add a single token or two tokens to the corresponding pool. The system will automatically balance the token quantities based on the current pool composition.
Your liquidity depends on your liquidity composition and the index price of the Derivatives Contracts. Let’s run an example:
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Please note that our liquidity composition and liquidity amount will be updated every five minutes.
Is there a limit to the quantity of a liquidity mining order?
Yes. The specific minimum/maximum order quantity can be viewed in the order zone.
What is the maximum leverage for Liquidity Mining?
The maximum leverage of each liquidity pair can be viewed in the order zone.
How to calculate the Estimated APY
Estimated APY is based on Liquidity Pool APY and Leverage.
Formula: Est. APY = APY of the liquidity pool × Leverage
Please note that the APY of the liquidity pool is calculated based on the actual yield of the previous three (3) days.
What is Total Yield?
Total Yield refers to the total rate of return from the liquidity pool. Your total yield will be counted once every hour and refreshed daily at 12AM (midnight) UTC.
How do I calculate my yield?
The actual amount of liquidity that has been added to the pool is calculated with leverage. Please note that your yield will be calculated based on your liquidity amount.
Formula
Your yield = (your liquidity/total pool liquidity) × total yield from the pool
Example
Let’s say that the BTC price is $40,000, and Trader A adds 0.1 BTC into the BTC/USDT liquidity pool with 2x leverage at 12AM (midnight) UTC.
In this case, Trader A's principal will be $4,000 (or 0.1 × 40,000), and their liquidity will be $8,000 (or 4,000 × 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 8 USDT (8,000/1,000,000 × 1,000) at 12AM (midnight) UTC on the next day.
How often is the unclaimed yield amount updated?
The amount of yield that's yet to be claimed will be updated daily at 12AM (midnight) UTC.
Please note that you are unable to claim your yield for the day if you remove liquidity from a liquidity pair before the yield update. In addition, when you remove liquidity, the unclaimed yield of the liquidity will be automatically distributed to your Earn Account.
Can I reinvest my yield at any time?
Yes. Your unclaimed reward can be reinvested immediately into the liquidity pool if it's ≥ 1 USDT.
Is there a liquidation risk for my liquidity mining position?
There is no liquidation risk if you do not add leverage. However, you may have liquidation risks if leverage has been applied.
Please note that all principal investment could be lost if the positions are liquidated. You may add USDT to reduce your leverage and to minimize liquidation risks.
To learn more about how to reduce leverage, please refer to Liquidation Price (Liquidity Mining) .
Will the liquidation risk of Liquidity Mining be lower than that of USDT Perpetual Contracts?
Taking 2x leverage as an example, the liquidation price in Liquidity Mining is 1/4 of the entry price, while the Derivatives Contract is 1/2 of the entry price. Therefore, the risk of Liquidity Mining is lower than that of Derivatives Contracts.
Under what circumstances will I receive a risk notification for Liquidity Mining?
You may receive three (3) liquidation alerts via email, app push and notification as follows:
- Liquidation Alert: When your Liquidity Mining position is 20% away from the liquidation price, you’ll receive an email, app push and notification informing you to add USDT to reduce your position leverage, thereby preventing your account from being liquidated. You will receive such a liquidation alert no more frequently than every 24 hours. Liquidation Alert: When your Liquidity Mining position is 10% away from the liquidation price, you’ll receive an email, app push and notification to inform you to deposit more USDT to avoid liquidation. You will receive such a liquidation alert no more frequently than every 24 hours.
- Liquidation Notification: When your Liquidity Mining position has been liquidated, you will receive liquidation details for the liquidity pair.
Notes:
— The added funds will not be added to the liquidity pool but simply used to pay back your leveraged lending portion.
— If the liquidation price of a liquidity pair does not change, you will only receive a liquidation alert once within a 24-hour period.
Where can I view my liquidity order history?
Please head to Liquidity Mining in your Earn Account under Assets. From there, you can see Effective Orders and All Orders tabs.
Effective Orders: You can view the details of active orders, including Pair, Principal (Change), Liquidity (Change), Liquidation Price, APY, Total Yield, Unclaimed Yield and more.
All Orders: You can check all order details through the following categories: Liquidity, Claimed Yield, Liquidation, Swap, Pair, Date and Type.
