Bybit Launches 'Light Loan' Collateral Loan with 30-Day No-Liquidation Period

Bybit launched Lite Loan, a crypto-collateralized borrowing product, on its app on the 9th, allowing users to pledge bitcoin (BTC) and ether (ETH) to borrow tether (USDT) or USD Coin (USDC). Loans range from 10 to 1,000 USDT or USDC per user at a 50% initial loan-to-value ratio, and repayment must be made in the same asset borrowed. Bybit is marketing a 30-day liquidation-free window as the product's defining feature, a departure from the continuous liquidation risk typical of DeFi lending markets. The small ticket sizes and stablecoin-only borrowing suggest the product targets retail users seeking short-term liquidity without selling their BTC or ETH holdings. What to watch next is how Bybit enforces collateral top-ups once the 30-day grace period ends and whether the LTV buffer proves sufficient in a sharp drawdown.