Key Information:
BTC holders will soon be able to stake Bitcoin through Babylon's staking protocol.
Lombard co-founder stated: the team is building a future that helps BTC holders participate in on-chain finance without sacrificing security or liquidity.
Cubist ecosystem development head stated: we are building the infrastructure to bring BTC into the Sui ecosystem, allowing users from all blockchain ecosystems to join Sui and participate in a decentralized ecosystem where BTC plays an important role.
NAVI expressed interest in collaborating with Babylon to support LBTC pools in its protocol.
The Sui Foundation announced a partnership with Babylon Labs, Lombard, and Cubist to integrate BTC with Layer1 blockchain and smart contract platform Sui, bringing Bitcoin liquidity into the Sui ecosystem.
As the largest liquid staking provider on Babylon, LBTC is Lombard's flagship product, and in the future, LBTC will further drive the development of the Sui ecosystem DeFi system as a staking asset. This collaboration is also expected to attract BTC holders to engage in more activities within the Sui ecosystem through LBTC.
Unlocking $1.8 trillion in Bitcoin liquidity for the Sui ecosystem
Through this collaboration, Bitcoin holders will be able to stake BTC in the Babylon staking protocol and receive native LBTC minted on Sui before December. LBTC will become a core asset of the Sui DeFi ecosystem, making BTCFi lending and trading possible, unlocking $1.8 trillion in liquidity from the Bitcoin ecosystem for Sui.
Regarding this collaboration, Fisher Yu, co-founder and CTO of Babylon Labs, stated in an article published by International Business Times:
Babylon is committed to building native use cases for BTC, bringing the security and liquidity of Bitcoin into decentralized systems. We are excited that Sui joins this vision and works hand in hand with us and our partners to achieve this goal.
Lombard is dedicated to unlocking the potential of Bitcoin as a dynamic financial tool by connecting Bitcoin with DeFi. As Lombard's flagship product, LBTC is pegged 1:1 with BTC, a yield-bearing, cross-chain, and highly liquid Bitcoin. Currently, the minting assets of LBTC tokens have exceeded $1 billion, with over half of LBTC actively used in DeFi applications. The impressive on-chain data demonstrates that LBTC has withstood the test of the market while showcasing the powerful liquidity of BTC in the Ethereum ecosystem.
Through this collaboration, Lombard's proven model will be introduced to the Sui ecosystem. Lombard co-founder Jacob Phillips stated:
The $1.8 trillion market cap of Bitcoin represents tremendous untapped potential. We are committed to building a future together where Bitcoin holders can fully participate in the next generation of on-chain finance without worrying about security or liquidity.
On the other hand, Cubist is building the infrastructure to bring BTC into the Sui ecosystem. Cubist is a developer tools and infrastructure company that brings modern software engineering practices and top-notch security to web3 builders. This collaboration will provide the highest level of security and performance management to support efficient deposits, minting, staking, and bridging.
Regarding this collaboration, Jameel Khalfan, head of ecosystem development at the Sui Foundation, stated:
Bringing BTC to Sui can be described as a match made in heaven. Thanks to the collaboration with Babylon, Lombard, and Cubist, users from all blockchain ecosystems can join Sui and participate in a thriving financial services ecosystem, where Bitcoin will play an important role.
Empowering the future development of Sui ecosystem DeFi
In the Sui DeFi ecosystem, more and more people are starting to pay attention to how to leverage the power of BTC within the Sui ecosystem. As one of the leading lending protocols on Sui, NAVI has expressed plans to collaborate with Lombard to support LBTC pools in its protocol.
NAVI CEO Elliscope Fang stated:
As the largest liquid staking issuer for Bitcoin, the latest collaboration between Lombard and Cubist will usher in a new revolutionary era for Sui and Bitcoin. NAVI is very pleased to collaborate with Babylon Labs, Lombard, and Cubist teams to bring the value of Bitcoin staking to Sui DeFi users.
As a popular Layer1 blockchain, Sui aims to create an efficient, private, secure, and permissionless environment to achieve digital asset ownership.
One of Sui's major advantages lies in its strong programmability and composability, with the vision of 'becoming the primary foundational universal coordination layer for all digital assets.'
Sui's programmability addresses the limitations of Bitcoin's on-chain programmability. Additionally, Sui features horizontally scalable data processing and storage capabilities, enabling unparalleled speed to support large-scale application operations, allowing everyone to access digital asset ownership at a low cost.
