Bybit Partners With Mantle and Aave to Deliver Global, Institutional-Level DeFi Liquidity
In a major development for the decentralized finance (DeFi) ecosystem, Bybit, Mantle Network, and Aave have announced a three-way strategic partnership aimed at delivering institutional-grade liquidity directly onchain, marking one of the most ambitious attempts yet to bridge centralized institutions with decentralized liquidity infrastructure.
The alliance brings together three industry leaders—Bybit, one of the world’s largest crypto exchanges; Mantle Network, an Ethereum Layer-2 built for high-speed and low-cost transactions; and Aave, the leading decentralized liquidity protocol. Together, they are launching a scalable liquidity pipeline designed to serve global institutional demand.
A New Standard for Onchain Institutional Liquidity
The partnership focuses on enabling secure, compliant, and transparent liquidity flows from Bybit into the Aave ecosystem via Mantle’s Layer-2 network. This will allow institutional investors to gain exposure to DeFi yields and lending markets without the bottlenecks of traditional on-chain infrastructure.
According to the collaboration, the initiative aims to solve key pain points that continue to limit institutional participation in DeFi:
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High execution costs on Ethereum’s base layer
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Fragmented liquidity across chains
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Compliance and risk concerns among institutional players
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Slow transaction settlement speeds compared to traditional finance
Mantle’s high-throughput Layer-2 network addresses these issues by offering faster settlement, significantly lower gas fees, and a modular design that supports high-volume activity.
How the Partnership Works
The integration allows Bybit to route liquidity into Aave’s pools through Mantle, enabling a more scalable and cost-efficient DeFi gateway. Institutions connected to Bybit’s infrastructure gain a direct line to Aave’s decentralized lending markets, unlocking new opportunities for generating yield and providing liquidity.
Key features include:
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Direct onchain liquidity provisioning managed via Bybit
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Aave’s battle-tested risk framework for secure lending and borrowing
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Mantle Network’s low-fee architecture for institutional-scale transactions
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Enhanced transparency, as all operations are recorded onchain
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Improved capital efficiency, reducing slippage and fragmentation
This setup brings the operational efficiency of centralized platforms and the openness of decentralized protocols together in one ecosystem.
A Boost for DeFi Adoption
Industry experts view this partnership as a critical step toward mainstreaming onchain liquidity solutions. Institutional players have shown increasing interest in DeFi, but remain cautious due to risk, speed, and compliance limitations. By combining the strengths of Bybit, Mantle, and Aave, the initiative aims to create the first globally scalable institutional liquidity corridor on a public blockchain.
The collaboration also reinforces a growing trend of CeFi–DeFi convergence, in which centralized exchanges integrate with decentralized networks to create hybrid financial ecosystems.
What This Means for the Market
If successfully implemented, the partnership could:
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Increase TVL (Total Value Locked) across Mantle and Aave
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Boost institutional DeFi participation
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Strengthen trust in Layer-2 infrastructure
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Accelerate the shift toward onchain finance
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Introduce new cross-platform liquidity products
For traders and DeFi users, it means deeper liquidity pools, potentially lower borrowing costs, and more stable yield opportunities.
What’s Next?
The companies plan to expand the partnership with additional liquidity products, new institutional onboarding mechanisms, and enhanced risk-management tools tailored for large-scale participants. More technical details and deployment timelines are expected to be released soon.
With this move, Bybit, Mantle, and Aave are positioning themselves at the forefront of the next phase of decentralized finance one where institutions and blockchain-native users interact seamlessly onchain.
