Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has introduced Margin Staked SOL, a new product allowing users to maximize their SOL earnings through leveraged borrowing and staking.
The platform offers up to 2x leverage, enabling investors to potentially enhance their yield through Bybit’s liquid staking token, bbSOL. As of March 17, 2025, the net APR of Bybit Margin Staked SOL stood at over 13%.
The launch comes as Bybit recovers from a $1.4 billion hack, the largest in cryptocurrency history, which was linked to a compromised developer laptop at Safe, a multi-signature wallet provider.
Independent audits from Verichains and Sygnia Labs revealed that North Korean hackers injected malicious code into Safe’s infrastructure, bypassing multi-factor authentication and hijacking AWS session tokens. Despite the breach, Bybit remains focused on expanding its product offerings, with Margin Staked SOL designed to simplify the borrowing and earning process.
Bybit users can stake SOL into Margin Staked SOL, which automatically borrows additional funds based on selected leverage. In return, they receive bbSOL, which serves as proof of the staked SOL.
The accrued rewards are managed by Sanctum’s smart contract, ensuring an optimal allocation of yield. The platform’s streamlined approach eliminates the need to manage multiple accounts or services, offering a single interface for borrowing, staking, and earning.
Redemption options provide additional flexibility. Users can opt for Instant Redemption to receive SOL immediately with no gas fees or choose Postponed Redemption for a potentially better exchange rate.
The platform allows users to redeem bbSOL at any time, with the remaining SOL credited to their Funding Account after loan repayment.
“Our mission is to empower users to help them make the most of their staked assets with innovative solutions,”
Said Emily Bao, Head of Spot and Web3 at Bybit.
“With Margin Staked SOL, we provide a straightforward way for users to leverage their digital assets and take full advantage of the opportunities within decentralized finance.”
The February 21, 2025 exploit that targeted Bybit was traced back to Safe, whose compromised infrastructure allowed malicious actors to drain funds through a vulnerability in its system. A Wayback Machine snapshot confirmed that malicious JavaScript was embedded in Safe’s website two weeks after the initial compromise, leading directly to the exploit.
In response, Safe has implemented stricter security measures, including an infrastructure reset, improved transaction verification tools, and enhanced malicious transaction detection.
Bybit is actively monitoring the stolen funds and has offered up to $140 million in bounties for information leading to their recovery. Despite the security breach, the exchange continues to develop new products, such as Margin Staked SOL, to enhance user earnings and solidify its position in decentralized finance.
