What Is Bybit Dual Asset? (Updated 2024)
What Is Bybit Dual Asset?
At a glance:
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 MNT, within a preset time frame. Upon maturity, your returns will be in the form of either USDT or your chosen crypto asset, depending on the outcome of your trade.
Bybit Dual Asset 2.0 is an enhanced version of the predecessor focusing on higher returns on capital for traders with better investment flexibility. Traders could customize their orders by entering different directions of the market trend based on their predictions to enjoy high-interest yields even if the predicted asset price did not trigger.
Key Takeaways:
- Bybit Dual Asset 2.0 is an enhanced version of the predecessor focusing on higher returns on capital for traders with better investment flexibility.
- There are two available product types: Buy Low and Sell High.
Glossary for Bybit Dual Asset
- Settlement Price: The average of the Bybit Spot market price in the 30 minutes prior to Settlement Time, which is 8 AM UTC on the Settlement Date.
- Target Price: The price you wish to buy or sell crypto.
- Subscription Limit: The minimum and maximum subscription amount for the chosen product.
- Auto Reinvest: A function to allow users to resubscribe to the product based on the previously filled order.
Understanding Buy Low, Sell High on Bybit Dual Asset 2.0
The Buy Low function on Bybit Dual Asset 2.0 refers to a product subscription in which traders anticipate the chosen digital asset to settle at a low targeted price at a predetermined time range. Here’s a user case scenario to help to visualize the product function:
- Subscription mode: Buy Low
- Underlying asset: USDT/BTC
- Target asset price: $21,000
- Subscription amount: 1,000 USDT
- Settlement period: 1 day
- Yields rate (APY): 110%
Alex chooses to buy BTC/USDT Dual Asset, and he will be using USDT as an underlying asset for the subscription to buy BTC at his desired lower crypto price. The yields vary depending on the settlement date, which ranges from 1 to 5 days. Assuming Alex opts for a 1-day subscription with 110% yields in APY, he is entitled to claim rewards in two different scenarios:
Scenario 1: When the asset target price is reached
On the settlement date, if the Settlement Price ≤ Target Price, he will successfully purchase BTC at his desired price with his subscribed USDT and interest income.
His returns will be calculated with the formula provided below:
Returns: (Subscription Amount + Interest) / Target Price
Interest: Subscription Amount x APY x Subscription Period (in days)/365
1,000 + ( 1,000 × 110% × 1/365) / 21,000 = 0.04776 BTC
Assuming the BTC price is $23,000 when cash out, Alex’s gross return on investment for the chosen Dual Asset subscription would be $1,098.48.
Scenario 2: When the asset target price fails to reach
On the settlement date, if the Settlement Price > Target Price, the target crypto will fail to be purchased, and you’ll receive your subscription amount and interest income in USDT.
Returns: (Subscription Amount + Interest)
Interest: Subscription Amount x APY x Subscription Period (in days)/365
Assuming the settlement price is higher than the target asset price, settling at $21,500. Alex’s return on investment will be calculated as below:
1,000 + (1,000 × 110% × 1/365) = 1,003.0137 USDT
Even though Alex failed to purchase BTC at his desired price, he still earned rewards on his contributed USDT in the Dual Asset pool. It is still a win-win situation for Alex, as he did not lose any money for opportunity costs.
*Note: In both cases, Alex will still earn interest on his investment in the form of USDT.
The Sell High function is the reverse of the Buy Low, in which traders anticipate selling the chosen digital assets at a higher targeted price within a predetermined date. Here’s a user case scenario to help to visualize the product function:
- Subscription mode: Sell High
- Underlying asset: BTC/USDT
- Target asset price: $23,500
- Subscription amount: 1 BTC
- Settlement period: 1 day
- Yields rate (APY): 150%
Alex chooses to sell BTC/USDT Dual Asset, and he will be using USDT as an underlying asset for the subscription to sell BTC at his desired crypto price at a higher anticipated price. The yields vary depending on the settlement date, which ranges from 1 to 7 days. Assuming Alex opts for a 1-day subscription with 150% yields in APY, he is entitled to claim rewards in two different scenarios:
Scenario 1: When the asset target price of $24,000 is reached
On the settlement date, if the Settlement Price ≥ Target Price, he will successfully sell his BTC at his desired price and receive USDT in return.
Returns: (Subscription Amount + Interest) x Target Price
Interest: Subscription Amount x APY x Subscription Period (in days)/365
Assuming the settlement price is higher than the target asset price, settling at $24,000. Alex’s return on investment will be calculated as below:
1 + (1 × 150% × 1/365) × 24,000 = $98.6301
Alex’s return on investment would be a total of 24,098.6301 USDT, including his capital of 24,000 USDT and the yields.
His returns will be calculated with the formula provided below:
Scenario 2: When the asset target price failed to reach, settling at $23,000.
On the settlement date, if the Settlement Price < Target Price, he fails to sell his crypto at the target price and will receive yields in BTC as a return.
1 × (1 × 150% × 1/365) = 1.0041 BTC
When converting 1.0041 BTC to USDT at $23,00 per BTC, Alex will receive 23,094.30 USDT, including the yields.
Why Should You Invest in Bybit Dual Asset?
Benefits
Enhanced yields: Users will earn an enhanced return regardless of their predictions.
Ideal for crypto asset HODLers, especially of USDT/BTC/ETH/MNT 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 allows you to manage your assets as you desire.
VIP-enhanced perks: Better subscription flexibility with a daily subscription rate, higher deposit and withdrawal assets limits, and a shorter lock-up period.
Automation: Users can rely on the Auto-reinvest function to customize their re-entry point to re-enter the position based on their previous successful entry position.
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 even during a downturn market.
You have confidence in the predicted price movement between the two crypto assets of your chosen Dual Asset product.
Bybit VIPs Extra Perks
Bybit VIP users can unlock additional perks when investing in Bybit Dual Asset 2.0. These benefits include
Daily unlimited subscription with multiple positions
There is no position limit as to how much a VIP trader can deposit in Bybit Dual Asset. Bybit supports a large number of deposits.
VIP traders can enjoy a shorter lock-up period (24 hours from the subscription to the settlement date)
How Does Bybit Dual Asset 2.0 Work?
Bybit Dual Asset 2.0 leverage on sophisticated trading mechanics to allow product participants to earn high yields with greater flexibility. The subscribed assets will be deployed to Bybit Derivatives for hedging via a trusted third-party entity affiliated with Bybit. The yield generation process will not involve any on-chain activity.
Participants will earn yields by capitalizing on the asset’s price movements by predicting the price direction of a crypto asset within a predetermined time frame.
Bybit Dual Asset vs. Dual Asset 2.0: The Differences
| Dual Asset 2.0 | Dual Asset (Version 1) |
Investment Mechanics | Buy low, Sell High upon contract maturity. | Relies on the Settlement Price and Benchmark Price that decides the yields upon contract maturity. |
Up to 25 latest crypto tokens/coins | BTC, MNT, ETH, USDT, USDC | |
Returns Calculation | Buy Low 1. Target Price is reached:
2. Target Price is not reached:
Sell High 1. Target Price is reached:
2. Target Price is not reached:
| 1. Settlement Price < Benchmark Price
2. Settlement Price ≥ Benchmark Price
|
Settlement Date | 1-, 3-, 5-days | 1-, 3-, 5-, 7-days |
Rewards | Up to 500% APY yields | Up to 400% APY yields |
New Upgrades | Auto Reinvest | N/A |
Notes:
- On the Settlement Date, Bybit will use 8AM UTC as the juncture at which to decide if the Settlement Price has reached the Target Price.
- The proceeds from your Dual Asset order will be returned to you within five (5) minutes after Settlement Time (i.e., 8AM UTC on the Settlement Date).
Understanding Auto Reinvest Feature
This is a newly added functionality on Bybit Dual Asset 2.0. The auto-reinvest function will automatically resubscribe to a Dual Asset plan on the Settlement Data using the same settings, e.g. the same subscribed coin, target price, and entry amount based on your last successful subscription. If the Auto Reinvest order is not triggered, it will be closed within 30 days.
Who Should Deposit in Bybit Dual Asset?
Dual Asset 2.0 is a trading tool that allows you to capitalize on price movements even in a volatile market. It provides a higher yield, and the lock-up period is short and 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 aligns with or against your forecast. If you have crypto assets or stablecoins sitting idle in your account, why not participate in Dual Asset 2.0 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 on 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 Pro Tips for Maximizing Bybit Dual Asset
Our new and improved product structure has made Dual Asset 2.0 simpler than ever. However, we still encourage users to research to forecast the movement of the coin’s price.
When to use Dual Asset
Bullish Market
In a bullish market, the settlement price will probably exceed the target 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/MNT, your coins would be converted to USDT based on the target price plus return yield. Even though you’ve lost out on the increment of BTC/ETH/MNT price on day T+1, if you intended 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/MNT 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 30 seconds to 1 minute. Once the plan is submitted, you can be sure that you’ve locked in the APY.
However, since the APY is refreshed relatively quickly, there could be a slight discrepancy if the yield at the 1-minute mark differs from that at the time the user submitted the order.
*Please note that new plans are released every day at 08:00AM UTC.
Benchmark price updated within seconds
With the benchmark price being updated so frequently, you can now enter Dual Asset 2.0 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 target price will help you decide the price at which you’re submitting your order. However, do note that the target price is only an estimate. The actual target price will refresh after your order has been successfully submitted.
Dual Asset 2.0 can be used as an alternative for a limit order
Dual Asset 2.0 can be considered a superior replacement to a limit order on the Spot market 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 limit 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 target 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 limit order. This is because the return on coins is also paired with a high APY.
What Are The Risks of Dual Assets?
Although Dual Asset is a relatively safe investment product, risks are still involved. The following risks are associated with Dual Asset:
There is uncertainty about which token will be settled upon contract maturity during extreme market price fluctuations.
The returns on asset value are not guaranteed due to market volatility. Participants may receive lesser returns if the asset price drops below the entry price.
Subscribed assets are locked, so you cannot cancel or redeem your plan before the Settlement Date.
If the market price moves further away from the Target Price, you may lose the opportunity to buy or sell at a desired price.
The trade can only occur based on the Settlement Date price.
How to Start Investing in Dual Asset
All participants need to sign up or log in to a Bybit account to start earning APY.
Check out our detailed guide below to get started with investing in Dual Asset.
Create Your Order
Step 1: Log in to your Bybit account and hover your cursor over the Finance tab on the navigation bar at the top of the page. Then, hover over Earn and click on Structured Products.
Step 2: Click on Dual Asset.
Step 3: Choose your product plan.
Decide on a Product Type [Select Buy Low (Invest in USDT) or Sell High (Invest in coin)]
Select the Trading Pair you wish to trade
Determine a Target Price at which you wish to buy or sell crypto
Select your investment period
Then, click on Select to proceed.
Note: The APY and target price will be refreshed every minute based on the latest price movements.
Step 4: Input your investment amount and click on Order Now. You can also choose to enable Auto Reinvest (Optional) which automatically reinvests your settlement proceeds in the upcoming plan on the same coin type, with the same target price at the nearest settlement date.
Notes:
Auto Reinvest orders cannot be modified 30 minutes prior to settlement time.
Once Auto Reinvest has been turned on, the system will subscribe to the next available product with the same target price and closest settlement date with your settlement amount if the target price is not reached.
For the order to go through, please make sure your Funding account has sufficient funds before you purchase a plan. If not, you can click the + icon on the Available row to transfer assets from other accounts to your Funding Account.
Step 5: Please ensure all of the information is checked and verified, then click on Order Now. Once an order has been successfully placed, you will not be able to cancel or edit your order.
Step 6: Your order is being processed. Please note that your order status will usually be confirmed within 30 to 60 seconds after you submit your order.
Please wait patiently for the order confirmation and you’ll be able to see it under the Effective Orders page. Once the subscription is successful, your return will begin to be calculated.
Your order has been subscribed successfully!
View Your Orders
To check the details of your Dual Asset orders, please click on View Order in the successful order notification pop-up window to explore more.
Alternatively, you can click on My Holdings at the top right of the Dual Asset page to enter the Dual Asset Orders page.
You can view your order details under the Dual Asset tab or click on Orders in the top right corner of the page to open your Dual Asset Order History.
Order details available for viewing are as follows:
Dual Asset tab: Product Name, Target Price, Deposit Amount, Duration, Order Time (UTC), Order Direction, Annualized Percentage Yield, Settlement Time (UTC), Order ID, Estimated Proceeds and Auto Reinvest
Dual Asset Order History: This page will also indicate the status of your orders as well as the effective proceeds and settlement price for all completed Dual Asset plans.
Disclaimer: All trading carries risk. Only risk capital you can afford to lose.
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