As the Bitcoin liquidity staking ecosystem rapidly evolves, various protocols present exciting opportunities and unique features. This article originates from an article written by Lorenzo Protocol, organized and compiled by Foresight News. (Preliminary summary: Standard Chartered Bank: Bitcoin will reach a new high by the end of the year. Whoever is elected by Sichuan and He will not hinder the rise of BTC) (Background supplement: Bitcoin’s $58,000 defense battle) US August PPI and unemployment data released, under the Fed Weekly drop of 1 code, probability of increase) The field of Bitcoin liquidity staking protocols is rapidly expanding because Bitcoin’s technological development has generally progressed faster in the past few years. Liquidity staking protocols built on top of Bitcoin are less than a year old, but there are already a wealth of staking protocols to consider when venturing into this new space. To briefly review, the Bitcoin Liquidity Staking Protocol is a system that allows Bitcoin holders to stake their Bitcoins in a way that allows them to receive rewards or yields while still having access to the underlying liquidity. These Bitcoins are typically used to secure Proof-of-Stake (PoS) networks, but other use cases exist, such as participating in stake-based oracle networks. At the same time, holders can still receive a liquid value equivalent to their staked Bitcoin in the form of derivative tokens. In addition to enabling Bitcoin holders to generate underlying income, the Liquidity Staking Protocol also allows users to securely transfer Bitcoin to the Bitcoin Layer 2 network, thereby unlocking Bitcoin for more flexible decentralized finance. (DeFi) form. As with any other category of DeFi protocols, different liquidity staking protocols on Bitcoin tend to focus on different niche features and attributes that set them apart from other options on the market. Additionally, many liquidity staking protocols on Bitcoin are powered by the creation of Babylon, a protocol that handles Bitcoin staking protocols underneath the Bitcoin blockchain. Currently, some of the most well-known Bitcoin liquidity staking platforms are Lorenzo Protocol, Bedrock, Botanix, pSTAKE Finance, and UTXO Stack, but more are emerging every day. Let’s take a closer look at what each of these Bitcoin staking solutions has to offer and how they differ from each other. Lorenzo Protocol Key Features Liquid staking tokens are divided into income accumulation tokens and liquid principal tokens Support for recycling and leverage staking Currently focused on Babylon, but can also be integrated with other high-quality Bitcoin staking projects offered by professional providers Bitcoin Liquidity Staking Program for an easy-to-understand staking process with no minimum staking requirements launched Lorenzo Protocol is designed to serve as the primary layer for Bitcoin liquidity financing, promoting the growing global appetite for Bitcoin through the innovative Bitcoin Layer 2 network Demand, these networks bring DeFi capabilities to the world’s most popular and trusted cryptocurrencies. Through Babylon’s Bitcoin Sharing Security Protocol, Lorenzo can stake Bitcoin liquidity onto a proof-of-stake chain in exchange for yield. Lorenzo also takes Babylon's functionality to the next level by building an efficient market for Bitcoin holders to find the best investment opportunities for their unused Bitcoin liquidity through its Bitcoin Liquidity Staking Program (BLSP) Floor, where the project can outline the uses of staking Bitcoin and the associated rewards for stakers. Each BLSP details the rules and rewards for staking, and has a fixed staking period for consistency. In addition, Lorenzo tokenizes the pledged Bitcoin into Liquid Principal Tokens (LPT), which represent the right to recover the principal amount of the pledged Bitcoin, and Yield Accumulation Tokens (YAT), which represent the income generated by this pledged Bitcoin collateral . This allows users to easily separate underlying Bitcoin collateral from the returns generated when using that liquidity in various DeFi applications. Tokenizing staked Bitcoin into separate LPT and YAT tokens also supports rolling and leveraged staking. Loop staking leverages external DEX partnerships, allowing users to stake BTC, borrow more BTC, and increase staking rewards. Leveraged staking simplifies the process by providing internal liquidity, allowing users to apply maximum leverage with a single click. Both products are designed to increase capital efficiency and optimize staking returns. While liquidity staking for Bitcoin is still a new concept, Lorenzo is one of the few products that is already live, at least in a basic form. Additionally, Lorenzo has no minimum staking amount as user funds are pooled together in an effort to democratize access to the Bitcoin staking process. While Lorenzo is currently focused on Babylon, it can technically be integrated with any other Bitcoin staking project that comes along. Bedrock Key Features Offers BTC, ETH and IOTX Staking Bitcoin integration is limited to two ERC-20 tokens issued on the Ethereum network Using Wrapped Bitcoin instead of native Bitcoin will introduce highly centralized liquidity Re-staking tokens will not lose the principal Deposits and earnings are used separately. Babylon Bedrock is a multi-asset liquidity re-pledge protocol developed in partnership with blockchain infrastructure company RockX. Backers of the project include Babylon co-founder Fisher Yu, IoTeX founder Raullen Chai and OKX Ventures. Bedrock is not only focused on Bitcoin, but also allows users to re-stake ETH and IOTX (the native token of IoTeX). It’s worth noting that Bitcoin integration is limited to users of Wrapped Bitcoin (wBTC) and FBTC, which are ERC-20 tokens backed by Bitcoin on Ethereum. wBTC is re-staking through Bedrock’s uniBTC protocol through a partnership with Babylon. This integration allows wBTC and FBTC holders to earn staking rewards on the Ethereum network; however, it is important to note that wBTC is a highly centralized asset as BitGo is its sole custodian. Bedrock’s product suite includes wBTC, ETH and IOTX’s Liquidity Recollateral Token (LRT). Bedrock leverages universal (uni) standards to maximize the liquidity and value of these PoS tokens with its uniBTC, uniETH, and uniIOTX products. This universal token model ensures that staking PoS tokens in Bedrock represent not only the principal asset, but also all future staking rewards. The non-rebasing nature of uniTokens means that their value increases over time rather than quantity, allowing holders to benefit from the growing value of each token while also benefiting from EigenLayer and Bedrock’s Earn extra points in the reward system. pSTAKE Finance Key Features Powered by Binance Labs Based on Babylon...