As a seasoned crypto investor with over a decade of experience in this ever-evolving space, I find the recent collaboration between Babylon Labs and Lombard Protocol to bring liquid Bitcoin staking to Sui, an exciting development that warrants my attention.
On November 25th, Babylon Labs and Lombard Protocol announced their plans to introduce liquid Bitcoin (BTC) staking to the rapidly growing layer-1 blockchain network, Sui. This was jointly revealed by both parties.
Come December, I’ll have the opportunity to deposit my Bitcoins onto the Sui platform and stake them within the Babylon, a Bitcoin layer 2 network. This action will enable me to issue LBTC, which is Lombard’s liquid staking token (LST). As per the recent announcement, this is all set to happen!
The plan is to introduce Bitcoin liquidity into the Sui network, thereby expanding the decentralized finance system by accepting LBTC as collateral, and encouraging Bitcoin owners to utilize their Bitcoins in a broader way through LBTC, according to Sui and Babylon’s statement.
They mentioned that LBTC is expected to serve as a fundamental element within Sui’s Decentralized Finance (DeFi) infrastructure, facilitating lending, borrowing, and trading activities. This integration aims to harness Bitcoin’s estimated $1.8 trillion USD liquidity within the Sui platform.
As the blockchain specialist known as Cubist, I’ll be constructing the framework for depositing, creating tokens, staking, and transferring Bitcoin to the Sui network.
Speaking as a fellow crypto enthusiast, I find myself awestruck by Bitcoin’s staggering $1.8 trillion market capitalization. This humongous figure hints at a vast, untapped potential that I believe could reshape the financial landscape.
A Cubist aims to create a situation where Bitcoin owners can seamlessly engage in advanced on-chain financial systems, all while ensuring both security and ample liquidity, as noted.
In 2023, the platform known as Sui garnered roughly $1.4 billion in total value secured (TVS), as indicated by the information from DefiLlama.
Labeled as a potential rival to Solana (SOL), Sui excels in creating high-speed decentralized apps (DApps).
Bitcoin LSTs command some $4.5 billion in TVL, according to stakingrewards.com. At around $1.5 billion in TV, Solv BTC (SolvBTC) is the most popular among Bitcoin LSTs. It is followed by Lombard, with a TVL of approximately $1 billion.
Bitcoin LSTs are tokenized claims on Bitcoin staked to L2s, including CoreChain and Babylon.
In a similar vein to PoS networks like Ethereum, Bitcoin L2 staking involves securing the network by keeping Bitcoins as security deposit, which earns stakers rewards.
Lombard’s LBTC is the largest LST on Babylon, which has yet to start distributing staking rewards.
Other Bitcoin LSTs are already earning yield. SolvBTC earns some 1.2% APR from staking Bitcoin on CoreChain.
On October 17th, Solv Protocol introduced a Bitcoin Liquid Swap Token (LST) on the Solana platform. This move aims to attract Bitcoin owners, as more and more opportunities for earning yields become available in the digital currency market.
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2024-11-25 20:29