Based on L1 Bitcoin staking protocol Babylon, the re-staking platform SatLayer announced on 12/19 a partnership with the popular L1 public chain Sui to unlock Bitcoin liquidity and promote BTCFi to the next stage of development.
Providing a shared security mechanism for Bitcoin, $5.8 billion liquidity helps Sui's ecosystem development.
The re-staking platform SatLayer provides a programmable shared security mechanism for Bitcoin, allowing developers to customize how Bitcoin is used within applications, such as designing slashing mechanisms for malicious behavior.
SatLayer has previously collaborated with Babylon Labs to position SatLayer as a tool to enhance Babylon's security measures. This is not limited to the operation of Proof of Stake (POS) chains, but also ensures the security and stability of infrastructure and cross-chain bridges such as DApps. Babylon's design is similar to a two-sided market where users can stake Bitcoin for rewards, while the POS chains utilize these Bitcoins to provide blockchain validation systems or services (Blockchain Validation Service / Subsystem).
Staking Bitcoin to Satlayer to provide a security diagram.
SatLayer also brings along nearly $5.8 billion in locked value from Babylon to provide stable liquidity and security for various decentralized applications (dApps) developed on Sui, such as DeFi protocols, lending platforms, and decentralized exchanges (DEX).
The chart shows DefiLlama's Babylon $5.8 billion locked value.
(Sui will support Bitcoin staking and is collaborating with Babylon and Lombard to launch LBTC in December)
Introducing Lombard and Lorenzo's LST, Sui's potential is limitless.
The previous collaboration between Babylon Labs and the re-staking protocol Lombard Protocol aimed to allow users to stake BTC to Babylon, then generate liquidity staking tokens LBTC through Lombard, and finally use LBTC for lending, trading, and other applications on Sui.
One of the goals of this collaboration between SatLayer and Sui is to move Lombard's LBTC and Lorenzo's staking protocol stBTC to Sui as collateral. The Sui Foundation believes that this collaboration can leverage Bitcoin to strengthen its ecosystem and accelerate application development.
Most projects on Sui have started to utilize Bitcoin liquidity.
Several representative projects of Sui have started to utilize Bitcoin liquidity, such as the cross-chain focused DeFi protocol Navi Protocol, the lending platform Suilend Protocol, the decentralized exchange Aftermath, the cross-chain protocol Ikadot based on the Polkadot ecosystem, and the decentralized exchange Cetus Protocol.
Through Sui's high scalability and SatLayer's re-staking Bitcoin mechanism, these projects can provide innovative solutions more quickly and securely, promoting diverse development in BTCFi.
(Babylon's mainnet has been live for nearly a month, and market reaction has not met expectations: Where does BTCFi's future lie?)
This article discusses the significant collaboration between Bitcoin re-staking platform SatLayer and Sui! Unlocking Babylon's $5.8 billion BTC liquidity, advancing BTCFi development. First appeared in Chain News ABMedia.
