Originally published on: November 25, 2024
Exciting news for Bitcoin holders! Sui, the rising layer-1 blockchain network, is partnering with Babylon Labs and Lombard Protocol to introduce liquid Bitcoin staking. This collaboration aims to revolutionize the DeFi ecosystem by offering Bitcoin holders the chance to stake their BTC and mint LBTC, Lombard’s liquid staking token, on Babylon, a Bitcoin layer-2 network.
Beginning in December, Bitcoin users on Sui can actively participate in this initiative and expand the decentralized finance ecosystem with LBTC as a collateral asset. This opportunity opens up new possibilities for Bitcoin holders to maximize the potential of their digital assets through LBTC, as shared by Sui and Babylon.
With LBTC set to become a core asset in Sui’s DeFi environment, lending, borrowing, and trading activities will thrive, unlocking Bitcoin’s massive $1.8 trillion USD liquidity within Sui’s platform. Cubist, the blockchain developer, will play a pivotal role in creating the necessary infrastructure for depositing, minting, staking, and bridging BTC to Sui to ensure a seamless and secure process.
Jacob Phillips, co-founder of Lombard, emphasized the untapped potential of Bitcoin’s $1.8 trillion market capitalization and the vision to empower Bitcoin holders to actively engage in the evolving landscape of on-chain finance without compromising security or liquidity.
Since its launch in 2023, Sui has garnered approximately $1.4 billion in total value locked (TVL), distinguishing itself as a high-performance decentralized application (DApp) platform with immense growth potential. The introduction of Bitcoin Liquid Staking (LST) on Babylon signifies a significant milestone in bridging traditional assets with innovative blockchain solutions.
Bitcoin LSTs have already gained traction, with over $4.5 billion in TVL, demonstrating the growing interest and demand for such offerings. Solv BTC (SolvBTC) stands out as the most popular Bitcoin LST, commanding a TVL of about $1.5 billion, followed closely by Lombard with a TVL of approximately $1 billion.
As decentralized finance continues to evolve and offer new opportunities for crypto enthusiasts, Sui’s collaboration with Babylon and Lombard sets the stage for a transformative journey towards unlocking the full potential of Bitcoin within the DeFi ecosystem. Stay tuned for more updates on this exciting development!