Bybit, the world’s third most visited crypto exchange, today completed the final phase of its integration of staked Ether (stETH) ready for Ethereum’s Shanghai upgrade. This next-level innovation enables users to earn interest on their ETH while using it for margin trading.

Bybit clients can stake their ETH to mint stETH through Bybit Earn, or buy it directly from the Spot market. They can then use this staked token as collateral in their Unified Trading Account (UTA), allowing them to trade on Bybit’s ultra-fast platform with desired leverage while still earning passive income from their stETH. 

Bybit’s stETH trading integration is the only one of its kind, offering users the ability to unlock further capital efficiency by allowing clients to benefit from both trading and staking rewards simultaneously. Indeed, the yield generated from stETH is dynamically adjusted according to the number of tokens staked on-chain, helping users get maximum returns typically in the 4-6% APR range. 

"We are excited to offer a new way for our users to make the most from their ETH investments," said Ben Zhou, co-founder and CEO at Bybit. "By combining two powerful features — ETH staking and UTA —into one product, we are creating an entirely new experience, which allows our users to enjoy capital efficiency and trade without missing out on the opportunity to earn yield."

With stETH on Bybit, users have access to a highly liquid way to stake their ETH. Indeed, the liquidity available for stETH’s trading pair on Bybit is higher than that of decentralized trading protocols, so customers will easily be able to collect their earnings