How to use Bybit Dual Asset mining? (Yield farming)

Understanding Bybit Dual Asset Mining Mechanics

1. Dual Asset Mining on Bybit is a structured yield farming product that combines two digital assets—typically BTC or ETH paired with a stablecoin like USDT or USDC—into a single investment vehicle.

2. The mechanism relies on options-based payouts: users deposit a pair of tokens and receive returns based on the price movement of the underlying asset relative to a predetermined strike price at expiry.

3. Each mining cycle has a fixed duration—commonly 7, 14, or 30 days—and a specified annualized yield, which is displayed before subscription.

4. Settlement occurs automatically at expiry: if the reference asset’s price remains within a defined range, users receive both principal assets back; otherwise, they receive one asset fully and the other partially—or entirely in kind—depending on settlement rules.

5. No manual staking or liquidity provision is required; all operations are handled by Bybit’s smart contract infrastructure, minimizing user interaction beyond initial deposit and redemption.

Subscription Process and Eligible Assets

1. Users must hold sufficient balance of both assets in their Bybit Spot Wallet prior to initiating a Dual Asset Mining order.

2. Supported pairs include BTC/USDT, ETH/USDT, BTC/USDC, ETH/USDC, and occasionally seasonal variants such as SOL/USDT during promotional periods.

3. Minimum subscription amounts vary per pair—for example, BTC/USDT requires at least 0.001 BTC and 10 USDT—while maximum caps apply based on real-time market liquidity and risk parameters.

4. Subscriptions are processed instantly upon confirmation, and the invested assets are locked for the full term without early withdrawal options.

5. Users can view active positions under “Earn” > “Dual Asset Mining” in the Bybit web interface or mobile app, where daily APY projections and remaining time are visible.

Risk Parameters and Settlement Logic

1. Each product displays a lower and upper bound—the “range”—calculated from the spot price at initiation plus or minus a percentage margin determined by volatility inputs.

2. If the underlying asset closes within the range at expiry, users receive 100% of both deposited assets plus accrued yield denominated in the settlement token.

3. If the price settles below the lower bound, users receive only the stablecoin component in full, plus yield paid in stablecoin; the volatile asset portion is forfeited.

4. If the price settles above the upper bound, users receive only the volatile asset in full, plus yield paid in that same asset—no stablecoin is returned.

5. Historical settlement data is publicly accessible via Bybit’s API and dashboard analytics, allowing users to assess past performance across different cycles and asset pairs.

Fees, Tax Implications, and On-Chain Transparency

1. Bybit does not charge subscription or redemption fees for Dual Asset Mining, though network gas costs may apply when withdrawing settled assets to external wallets.

2. Yield distributions are treated as taxable income in multiple jurisdictions—including the United States, United Kingdom, and Singapore—based on fair market value at the time of receipt.

3. All settlement events are recorded on-chain through Bybit’s internal ledger system, with hash-verified receipts available for audit upon request.

4. Users retain full ownership of deposited assets during the term, but control is temporarily delegated to Bybit’s custodial smart contracts to execute option-based logic.

5. Real-time balance updates reflect accrued yield even before settlement, enabling users to monitor effective APY progression throughout the cycle.

Frequently Asked Questions

Q1. Can I cancel a Dual Asset Mining position after subscription?No. Once confirmed, subscriptions are irrevocable and remain locked until expiry. There is no partial or full early exit mechanism.

Q2. Is my principal guaranteed?Principal protection applies only to the extent defined by settlement rules. In-range outcomes return both assets; out-of-range outcomes result in loss of one asset’s principal value.

Q3. How is the strike price determined?The strike price is derived from the Binance-Bybit composite index at the moment of subscription, adjusted for implied volatility and bid-ask spread buffers.

Q4. Are yields compounded across cycles?No. Yields are distributed as single payouts per cycle. Auto-compounding is not supported; users must manually reinvest settled assets into new positions.