Sui, a Layer 1 blockchain and the 7th largest Proof-of-Stake protocol according to CoinGecko, announced that it will become a Bitcoin Secured Network (BSN) as a part of Babylon’s phase 3 launch later this year.
This development is an expansion on Sui’s previous integration with the Babylon Bitcoin staking protocol. Sui will be leveraging Bitcoin’s security and liquidity.
The main aim behind this initiative is to utilize Bitcoin’s security and its $1.8 trillion market capitalization, which will offer users a range of DeFi opportunities such as lending and borrowing.
Enhancing Security and Liquidity
Babylon’s trustless and non-custodial staking protocol makes sure that the user has full control of their staked Bitcoin. This provides a secure alternative to traditional wrapped Bitcoin solutions.
The integration allows users to stake their Bitcoin and then receive liquid staking tokens (LSTs) on the Sui network, which can be used across various DeFi protocols. This creates a direct pathway for Bitcoin capital to flow into Sui’s ecosystem, enhancing cross-chain functionality and scalability.
Expanding DeFi Ecosystems
This partnership between Sui and Babylon Labs, and Lombard Protocol will change the way Bitcoin is used in DeFi. Lombard’s liquid staking token, LBTC, will be the core asset on Sui’s ecosystem that will enable options such as lending, borrowing and trading options.
This integration is bound to not only enhance Sui’s DeFi capabilities but will also invite Bitcoin holders to participate more actively in on-chain finance. Here the users will not have to compromise on security or liquidity.
Sui teaming up with Cubist to integrate Bitcoin, makes Sui a top spot for Bitcoin DeFi (BTCfi). This partnership combines Bitcoin’s security with Sui’s tech. This will provide a push to blockchain innovation and adoption within the DeFi space.
About Sui and Babylon
Sui is a layer 1 blockchain that is designed mainly for fast, secure, and scalable digital asset ownership and said to be supporting various use cases like DeFi, NFTs, and gaming.
As stated above Babylon is a company that specializes in Bitcoin security-sharing protocols. They provide trustless staking solutions that combine Bitcoin’s security and Proof-of-Stake networks.
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