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2 дек. 2021 г.

What Is Bybit Dual Asset? (A Complete Guide)

Dual Asset is a short-term speculation vehicle that lets you capitalize on small price movements in the market. All you have to do is predict the direction of a given crypto asset, such as BTC, ETH or BIT, within a preset time frame. 

Upon maturity, your returns will be in the form of either USDT or your chosen crypto asset, depending upon the outcome of your trade.

Why Deposit in Bybit Dual Asset?

Benefits

  • Yield Enhancement: Users will earn an enhanced return if their view of the market direction is accurate.

  • Ideal for crypto asset HODLers, especially of USDT/BTC/ETH/BIT and other popular altcoins, who seek to accumulate more of their chosen cryptocurrencies to potentially increase their crypto holdings, or take profit in the form of crypto.

  • Short Tenure: Shorter deposit period gives you the flexibility to manage your assets as you desire.


Dual Asset might be a good fit for you if:

  • You’re comfortable receiving yield in either USDT or alternate crypto assets.

  • You wish to earn potentially higher yields and accumulate alternate crypto assets in a downturn market. 

  • You wish to make a quick, fuss-free and simple swing trade in an uptrend market.

  • You predict little price movement between the two crypto assets of your chosen Dual Asset product.


How Does Bybit Dual Asset Work?

The returns for Dual Asset can be either in the same asset or a different one, depending on two key factors: Settlement price and benchmark price.

Settlement price:

The spot price of the coin (quoted in USDT) when your chosen product plan ends. This is derived from Bybit’s index price (weighted average of spot price across several exchanges) in the last 30 minutes before settlement.

Benchmark price:

The spot price of the coin (quoted in USDT) when your chosen product plan starts. It’s derived from Bybit’s index price (weighted average of spot price across several exchanges) five minutes after your order is successfully processed. 

When the settlement price for the underlying asset (predominantly a crypto asset) goes above the benchmark price, both principal and yield will be converted to stablecoins. This essentially sells off your crypto asset at a higher value, earning you more stablecoins due to the high yield. 

When the settlement price for the underlying asset goes below the benchmark price, you’ll receive the equivalent of your deposited crypto asset and yield in the form of the crypto asset. This will earn you more crypto assets than you originally deposited. 

Either way, Dual Asset allows you to earn a high yield on your asset — no matter which direction the settlement price is headed. 

Some other factors to take into consideration when partaking of Dual Asset are as follows:

  • Product pairing: Currently, Bybit offers 21 Dual Asset product pairings, including ETH/USDT, BTC/USDT, BIT/USDT, and more

  • Deposit asset: Your chosen crypto asset that you wish to deposit

  • Deposit amount

  • Deposit period

  • Annual percentage yield (APY): This yield is different for every Dual Asset product pairing, so be sure to select the one you desire.

  • Estimated benchmark price that you might be entering


Deposit Asset: USDT

Settlement Price < Benchmark Price

Settlement Price ≥ Benchmark Price

Proceeds

Deposit Amount/Benchmark Price × (1 + APY/365 × Duration)

Deposit Amount × (1 + APY/365 × Duration)

Rewards

Receive assets such as BTC, ETH and BIT upon settlement

Receive USDT upon settlement 

Deposit Asset: BTC, ETH, BIT and others

Settlement Price < Benchmark Price

Settlement Price ≥ Benchmark Price

Proceeds 

Deposit Amount × (1 + APY/365 × Duration)

Deposit Amount × Benchmark Price × (1 + APY/365 × Duration)

Rewards

Receive assets such as BTC, ETH, and BIT upon settlement

Receive USDT upon settlement (Duration is either 1, 3 or 5 days)

Based on the settlement rules above, let's illustrate with some examples.

Deposit Asset: USDT 

Let’s assume that Trader A uses 4,000 USDT to purchase a 1-day Dual Asset product with a 300% APY. The benchmark price is $3,900. One day later, one of two scenarios will take place:

Scenario A

The ETH settlement price is below $3,900. With a return of 300% APY, Trader A will receive 1.03407 ETH as the settlement price.*

*Proceeds = Deposit Amount/Benchmark Price × (1 + APY/365 × Duration)

4,000/3,900 × (1 + 3.00/365 × 1) = 1.03407 ETH 

Scenario B

The ETH settlement price is above or equal to $3,900. Trader A will receive a principal of 4,000 USDT and a return of 300% APY, which adds up to 4,032.87 USDT.*

*Proceeds = Deposit Amount × (1 + APY/365 × Duration) 

4,000 × (1 + 3.00/365 × 1) = 4,032.87 USDT

If the trader had intended to convert some of their USDT to ETH, they would have achieved that with a high yield in Scenario A. However, if the trader is betting for the underlying asset settlement price to go above the benchmark price, they would receive more USDT with the high yield in Scenario B. 

Deposit Asset: ETH

Let's say that Trader A now uses 1 ETH to purchase a 1-day Dual Asset product. The current ETH reference spot price is $4,000, and the APY is 300%. The benchmark price is $3,900. One day later, one of two scenarios will take place:

Scenario C

The ETH settlement price is below $3,900. Trader A will receive a principal of 1 ETH and a return with a 300% APY, which is 1.00821 ETH.*

*Proceeds = Deposit Amount × (1 + APY/365 × Duration)

  1 × (1 + 3.00/365 × 1) = 1.00821 ETH

Scenario D

The ETH settlement price is above or equal to $3,900. The deposited 1 ETH will be converted into 3,900 USDT, plus a return with a 300% APY, which is 3,932.05 USDT.*

*Proceeds = Deposit Amount × Benchmark Price × (1 + APY/365 × Duration) 

1 × 3,900 × (1 + 3.00/365 × 1) = 3,932.05 USDT

HODLers of BTC/ETH/BIT can hedge the volatility of their crypto assets when the settlement price of the crypto asset goes below the benchmark price. They can gain more assets in return for what they originally deposited. When the settlement price is above the benchmark price, traders can cash out their deposited crypto assets alongside a high yield in USDT. 

Who Should Deposit in Bybit Dual Asset?

Dual Asset is a trading tool that allows you to capitalize on price movements in low-volatility markets. It provides a higher yield, and the short deposit period is flexible. Higher yield does bear higher risk; however, users have the liberty to decide how they feel about the current market, and to deposit accordingly. 

We can help you secure a high yield for your assets today, whether the market moves in line with or against your forecast. If you have crypto assets or stablecoins sitting idle in your account, why not participate in Dual Asset — either to gain more crypto assets or earn profit in stablecoins? Either way, a high return on your assets is guaranteed.

However, here are the risks involved:

  • The return in asset value is not guaranteed, due to price (value) fluctuations. 

  • In the event of adverse market movements, your returns in the settlement asset may be less than your original deposit asset upon maturity.


Top 5 Tips to Maximizing Bybit Dual Asset

With our new and improved product structure, we’ve made Dual Asset simpler than ever. However, we still encourage users to do their own research in forecasting the movement of the coin’s price. 

When to use Dual Asset


  • Bullish Market

In a bullish market, it’s highly probable that the settlement price will go above the benchmark price. The price of the coin will either begin or continue to climb each day. In such a scenario, depositing USDT is appropriate, as you stand to gain more USDT in return. If you were to deposit BTC/ETH/BIT, your coins would be converted to USDT, based on the benchmark price plus return yield. Even though you’ve lost out on the increment of BTC/ETH/BIT price on day T+1, if your intention was to cash them out on day T, you’ll have achieved that with an additional yield. 

  • Bearish Market


In a bearish market, the price of the coin is in a downward trend. Whether you deposit BTC/ETH/BIT or USDT, your returns will be in other crypto assets apart from stablecoins. This will allow you to gain more coins with yield, even if the price of the coins takes a downturn. The accumulated coins can be used for trading or HODLing as a store of value to appreciate. 

The earlier you deposit, the higher the APY


With every new plan released, we strongly encourage users to deposit early. The earlier you deposit, the higher the APY to which you’re entitled. The APY will be refreshed every five minutes. Once the plan is submitted, you can be sure that you’ve locked in the APY. 

However, since the APY is refreshed every five minutes, there could be a slight discrepancy if the yield at the 5-minute mark differs from that at the time the user submitted the order. 

*Please note that new plans are released every day at 10:00AM UTC.

Benchmark price updated every five minutes


With the benchmark price being updated every five minutes, you can now enter Dual Asset with peace of mind. Referencing the estimated benchmark price, decide which coins you’d like to deposit in order to gain your desired outcome. 

The estimated benchmark price will help you decide the price at which you’re submitting your order. However, do note that the benchmark price is only an estimate. The actual benchmark price will be determined five minutes after your order has been successfully submitted. 

Dual Asset can be used to replace a conditional order


Dual Asset can be considered a superior replacement to a conditional order when you’re looking to realize a profit from a coin, or if you want to set a target price at which to buy it. 

On days when you’d like to realize a profit from a coin, instead of placing a conditional order to sell off your coins, you can deposit them with Dual Asset. This will give you a high APY, along with what you could have received if you’d sold your coins via conditional order. 

In a downturn where the settlement price falls below the benchmark price, you stand to gain more coins in return and would be better off using Dual Asset, compared to setting a target price to buy in via a conditional order. This is because the return in coins is also paired with a high APY. 

Proceeds calculator


Estimated proceeds can be calculated on the order page and are based on the estimated APY and benchmark price. This will give you a sense of what you’ll be receiving in either settlement scenario. 

If you’d like to find out more, head to Dual Asset FAQ for more information.