Babylon Labs and Lombard Protocol are making ready to carry liquid Bitcoin (BTC) staking to Sui, the burgeoning layer-1 blockchain community, Sui and Babylon disclosed on Nov. 25.
Beginning in December, Bitcoin holders on Sui will likely be in a position to stake BTC to Babylon, a Bitcoin layer-2 (L2) community, and mint LBTC, Lombard’s liquid staking token (LST), according to the announcement.
The initiative “goals to onboard Bitcoin liquidity to the Sui ecosystem, rising the decentralized finance ecosystem with LBTC as a collateral asset, and alluring Bitcoin holders to do extra with their Bitcoin by way of LBTC,” Sui and Babylon stated.
They stated LBTC “will develop into a core asset in Sui’s DeFi ecosystem, enabling lending, borrowing and buying and selling to unlock Bitcoin’s $1.8 trillion USD price of liquidity on Sui.”
Bitcoin LSTs by TVL. Supply: stakingrewards.com
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Cubist, a blockchain developer, will construct infrastructure for depositing, minting, staking and bridging BTC to Sui.
“Bitcoin’s $1.8 trillion market capitalization represents immense untapped potential,” Jacob Phillips, Lombard’s co-founder, stated in an announcement.
Cubist seeks to facilitate “a future the place Bitcoin holders can totally take part within the subsequent technology of onchain finance with out compromising safety or liquidity,” he added.
Launched in 2023, Sui has attracted roughly $1.4 billion in whole worth locked (TVL), in accordance to information offered by DefiLlama.
Dubbed a Solana killer, Sui makes a speciality of high-performance decentralized purposes (DApps).
Supply: DefILlama
Bitcoin LSTs command some $4.5 billion in TVL, in accordance to Stakingrewards.com. At round $1.5 billion in TV, Solv BTC (SolvBTC) is the most well-liked amongst Bitcoin LSTs. It’s adopted by Lombard, with a TVL of roughly $1 billion.
Bitcoin LSTs are tokenized claims on Bitcoin staked to L2s, together with CoreChain and Babylon.
Related to proof-of-stake (PoS) networks equivalent to Ethereum, Bitcoin L2 stakers lock up BTC as collateral to safe the networks in change for rewards.
Lombard’s LBTC is the biggest LST on Babylon, which has but to begin distributing staking rewards.
Different Bitcoin LSTs are already incomes yield. SolvBTC earns some 1.2% APR from staking Bitcoin on CoreChain.
On Oct. 17, Solv Protocol launched a Bitcoin LST on Solana in a bid to woo BTC holders as yield alternatives proliferate for the digital foreign money.
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