Babylon Labs has partnered with Fort Island Ventures-backed SatLayer to carry the advantages of Bitcoin staking and redrawing to extra customers.
The transfer goals to offer Bitcoin (BTC) holders the chance to discover the decentralized monetary ecosystem surrounding the world’s largest and hottest cryptocurrency.
Babylon, whose complete worth has exceeded $2 billion, is a number one BTC staking protocol. In response to a press launch, the platform goals to supply additional liquidity, shared safety and capital effectivity for BTC holders on this partnership.
Learn extra: Babylon Bitcoin staking pushes BTC prices above $130
SatLayer will allow this performance by offering re-recording capabilities to customers of the Babylon protocol. The companions plan to faucet sensible contracts to allow programmable BTC slashing.
In proof-of-stake mechanisms, slash makes it attainable to punish the dangerous habits of validators. The implementation of the mechanism opens up Bitcoin’s utility throughout the DeFi ecosystem. Customers staking BTC assist safe PoS chains, rollups, and decentralized functions within the fast-growing decentralized finance market.
“Babylon Labs and SatLayer share a imaginative and prescient for the way forward for Bitcoin because the cornerstone of decentralized ecosystems. Collectively, we allow functions and infrastructure to leverage Bitcoin’s unparalleled safety whereas increasing liquidity by way of programmable redraw frameworks. The launch of SatLayer’s devnet opens a brand new period of Bitcoin-powered innovation for builders all over the place.”
Luke Xie, co-founder of SatLayer.
The partnership between Babylon Labs and SaltLayer considerably improves staking and redeeming on Bitcoin, the platforms stated.
Babylon Labs has secured the backing of main enterprise capital corporations within the sector, together with Paradigm, which led the $70 million funding spherical in June. The protocol additionally attracted investments from Binance’s incubation and enterprise capital arm in February 2024.
The $2 billion TVL protocol is working with ecosystem gamers comparable to Solv Protocol, Lombard, and Bedrock to broaden the Bitcoin DeFi ecosystem by way of liquid staking tokens. On November 25, Babylon Labs and Lombard teamed as much as carry Bitcoin staking to Sui.
Babylon’s providing permits Bitcoin holders to stake BTC on PoS chains, layer 2 networks, and knowledge availability layers, with customers incomes staking rewards.
Learn extra: Pantera Capital CEO: Bitcoin Might Attain $740,000 as Blockchain Adoption Nonetheless Lagging