Bybit discontinued SONIC as a collateral and lending asset.
DeFi & Yields ·
Bybit will cease treating SONIC as a collateral and lending asset, with the discontinuation taking effect in phases starting October 19, 2026. On that date, borrowing and lending services for SONIC—including UTA Loans and Bybit Savings—will stop. Three days later, on October 22, 2026, at 8AM UTC, SONIC will no longer qualify as collateral for either UTA or Institutional Loans and cannot be used to settle debt positions.
Users holding SONIC-backed loans face a hard deadline: all outstanding liabilities denominated in SONIC must be repaid by October 22, 2026, 8AM UTC. Failure to do so will trigger automatic repayment mechanics that may result in losses. The exchange also warns traders to monitor their maintenance margin rate and loan-to-value ratio to mitigate liquidation risk. On the same date, SONIC will be removed from Bybit Savings products, with principal and accrued yields automatically returned to users' Funding Accounts.
The timeline leaves users just over three days to unwind SONIC-collateralized positions and redeem staked holdings. Bybit has advised early redemptions to avoid processing delays and recommends users adjust financial strategies and portfolio allocation ahead of the cutoff.