What Is Bybit Liquidity Mining?
Liquidity mining refers to liquidity pools provided by Bybit, based on the Automated Market Maker (AMM) model. You can contribute liquidity to these pools, becoming a liquidity provider (LP), and earn profits from trading fees generated by token swaps within the pool.
👉 Boost your earnings with leveraged liquidity mining—but be aware that leveraged positions carry liquidation risks.
Supported Liquidity Trading Pairs
Check the latest supported liquidity trading pairs here.
Supported Tokens for Liquidity Mining
Any token listed as part of a liquidity trading pair is supported.
How Are Earnings Generated in Liquidity Mining?
Earnings are generated by providing liquidity to Bybit’s derivatives markets, managed by trusted third parties (which may include entities affiliated with Bybit). The process does not involve on-chain activity.
Are There Fees for Liquidity Mining?
- Adding/Removing Liquidity: Bybit does not charge fees for depositing or withdrawing liquidity. However, slippage may occur if liquidity exceeds predefined thresholds.
Identity Verification Requirements
Only users who complete at least Level 1 KYC verification can participate in liquidity mining. For details, refer to Bybit’s KYC FAQ.
Note: Corporate KYC users are also eligible.
Can I use a sub-account to participate?
Yes, sub-accounts can access liquidity mining products.
Risks to Principal
Bybit’s liquidity mining follows the x × y = k rule, ensuring the product of your deposited token quantities remains constant over time. However, LPs may face impermanent loss.
Formula:
( x \times y = k ), where:
- ( x ) and ( y ) = token quantities in the pool
- ( k ) = constant
Generating Liquidity
You can add single or dual tokens to a liquidity pool. The system auto-adjusts token quantities based on the pool’s current composition.
Example Calculation:
| | No Leverage | 2x Leverage |
|---|---|---|
| Principal | 6,000 USDT | 6,000 USDT |
| Index Price | 3,000 USDT = 1 ETH | 3,000 USDT = 1 ETH |
| Liquidity Composition | 3,000 USDT + 1 ETH | 6,000 USDT + 2 ETH |
| Liquidity Value | 6,000 USDT | 12,000 USDT |
Liquidity updates every 5 minutes.
How Price Changes Affect Liquidity Value
The x × y = k rule ensures liquidity value fluctuates with price movements:
Scenario 1: BTC price rises to 36,000 USDT
- New liquidity value: 0.456 BTC + 16,431.677 USDT (Total: 32,863.35 USDT)
Scenario 2: BTC price drops to 24,000 USDT
- New liquidity value: 0.559 BTC + 13,416.408 USDT (Total: 26,832.81 USDT)
Order Limits & Leverage Caps
- Minimum/Maximum Order Sizes: Displayed in the order interface.
- Leverage Limits: Vary by trading pair (check order section).
Calculating Estimated APY
Formula:
[ \text{Estimated APY} = \text{Pool APY} \times \text{Leverage} ]
Pool APY is based on the last 3 days’ actual earnings.
Total Earnings & Payouts
- Total Earnings: Pool’s cumulative returns (updated hourly).
- Your Earnings:
[ \text{Earnings} = \left( \frac{\text{Your Liquidity}}{\text{Total Pool Liquidity}} \right) \times \text{Pool Earnings} ]
Example:
- Your liquidity: 8,000 USDT
- Pool liquidity: 1,000,000 USDT
- Pool earnings (24h): 1,000 USDT
- Your payout: 8 USDT
👉 Maximize returns with strategic liquidity allocation
Reinvesting Earnings
If unclaimed earnings ≥ 1 USDT, you can reinvest them instantly.
Liquidation Risks
- No Leverage: No liquidation risk.
- With Leverage: Positions may face liquidation.
Note: If liquidated, you could lose your entire principal. Add USDT to reduce leverage and mitigate risk.
Comparative Risk:
- Liquidity Mining (2x Leverage): Liquidation price = 25% of entry price
- USDT Perpetual Contracts: Liquidation price = 50% of entry price
Liquidation Alerts
You’ll receive 3 alerts via email/app notifications:
- 20% to liquidation: Add USDT to lower leverage.
- 10% to liquidation: Deposit more USDT urgently.
- Liquidation notice: Details of liquidated position.
Alerts are sent once per 24 hours per price level.
Viewing Order History
Navigate to Earn > Liquidity Mining to see:
- Active Orders: Trading pair, principal, liquidity, APY, earnings.
- All Orders: Filter by liquidity, earnings, liquidation, swaps, pairs, or dates.
FAQs
Q: Can I withdraw liquidity anytime?
A: Yes, but unclaimed earnings are paid upon withdrawal.
Q: How often are earnings updated?
A: Hourly (or immediately when removing liquidity).
Q: Is liquidity mining safer than trading?
A: Lower liquidation risk compared to leveraged derivatives trading.
Q: What happens if the pool’s APY drops?
A: Your earnings adjust dynamically based on the pool’s performance.
Q: Are earnings compounded automatically?
A: No—you must manually reinvest earnings ≥1 USDT.
Q: Why did my liquidity value decrease despite price stability?
A: Impermanent loss can occur even without drastic price swings.
Optimize your strategy with Bybit’s liquidity mining tools today!