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Alpha Farm: Updates to unused token handling

Web3Instant
Web3Instant
Friday, December 19, 2025•3 min read
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Alpha Farm: Updates to unused token handling

Alpha Farm: Updates to unused token handling

Bybit • Latest Bybit News

Tags: Spot

To reduce frictional costs during the Alpha Farm liquidity provision process, we’re modifying the handling of small unused token amounts (also known as “dust”).

Background

When you provide liquidity in Alpha Farm, the final amount deposited into the pool may be slightly lower than the amount submitted. For example, providing liquidity with 100 units may result in 98 units deposited.

What causes frictional costs

When Bybit adds liquidity on your behalf, assets are converted based on the pool’s token composition and your selected price range. This process can create small differences due to:

• On-chain swap slippage.

• Liquidity provision adjustments caused by price fluctuations that change the pool’s required token ratio.

• Minor residual token amounts that cannot be fully utilized.

These factors may result in a small amount of unused tokens when opening a position.

What’s changing

To improve position opening efficiency, Bybit will explicitly process and return unused tokens generated during Alpha Farm liquidity provision.

• When the value of unused tokens exceeds $0.01, they will be eligible for return.

• The value is calculated using the token price at the time the liquidity provision order is placed.

• Returned amounts are credited to your UTA balance in the original payment token.

Effective date

This Alpha Farm update will take effect on Dec 19, 2025.

How this applies to different positions

• Positions opened on or after Dec 19, 2025 will follow the updated return mechanism.

• Positions opened and closed before Dec 19, 2025 are covered through a separate return process.

• Positions opened before Dec 19, 2025 that remain open are also covered through the return process.

For positions opened before the updated return mechanism takes effect, Bybit will arrange the return of unused tokens separately.

Details on compensation handling will be shared separately.

Source: Bybit Official Announcement — originally published on Fri, 19 Dec 2025 10:00:00 GMT.

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