Bybit, the world's second-largest cryptocurrency exchange by trading volume, announced an update to its Fixed Rate Loan product that allows users to leverage their Flexible Earnings balance to fund supply orders. This enhancement enables users to continue earning flexible APR on their capital while awaiting loan matches, maximizing returns on idle funds.

Before the upgrade, lenders waiting for their fixed-rate loan orders to be matched were letting their funds sit idle. The new feature makes it possible for users to make full use of their assets and generate passive income.

By leveraging Flexible Earnings as a funding source for supply orders, users can maintain continuous earning potential while their positions await matches. Once an order is matched, Bybit automatically converts the position into a fixed-term loan at the agreed-upon rate, seamlessly transitioning users from flexible to fixed earnings without manual intervention.

The update also allows Bybit users to combine capital from both their Funding Account and Flexible Earnings in a single supply order, offering greater flexibility in how they manage and deploy their assets.

The streamlined process takes three simple steps:

1. User may place a supply order using their Flexible Earnings Balance, keeping their funds eligible for flexible APR.
2. Once the supply order is matched, the required amount is redeemed automatically.
3. The position moves into a fixed-term loan at the agreed rate.

The real-time processing through Bybit's advanced order matching system provides clarity of order status and earning rates at every stage.

The new feature ensures there is no APR gap and zero waiting time, boosting capital efficiency for users. No matter their capital size, users' funds continue earning while their orders are pending. Users benefit from interest continuity combined with smart, automatic position conversion that minimizes manual steps.