Skip to content
technology — Bitcoin — Staking — Finance — Layer 1 — Decentralized — Token — Protocol — Investing — Liquidity

Bitcoin finance (BTCfi) integration approved by Sui Network, thanks to Babylon partnership.

Bitcoin holders can now trustlessly stake their BTC through a collaboration between Sui Network and Babylon Labs, introducing BTCfi to the Sui ecosystem. This partnership allows for the use of liquid staking tokens within Sui's DeFi protocols.

,   and  Administrator
3 min read
Bitcoin holders can now stake their BTC without worry, thanks to a collaboration between Sui...
Bitcoin holders can now stake their BTC without worry, thanks to a collaboration between Sui Network and Babylon Labs. This partnership introduces BTCfi to Sui's ecosystem, enabling users to stake Bitcoin and utilize liquid staking tokens within the network's Decentralized Finance (DeFi) protocols.

Bitcoin finance (BTCfi) integration approved by Sui Network, thanks to Babylon partnership.

Swinging the DeFi Scene with Sui and Babylon

In a groundbreaking move that's gonna rock the Decentralized Finance world, Sui Network is teaming up with Babylon to usher in BTCfi - the Bitcoin finance revolution - into its booming ecosystem. Fisher Yu, Babylon Labs' co-founder, announced this game-changer, signaling a massive stride towards integrating Bitcoin's rock-solid security and liquidity into high-performing DeFi infrastructure.

Say Hello to BTCfi: The New Era of Bitcoin Utilities

BTCfi, short for Bitcoin finance, is all about unlocking the potential of Bitcoin holders to tap into DeFi pools without giving up their crypto assets. Until now, Bitcoin kinda stayed in the shadows of DeFi as a safe haven rather than a hardworking asset. But BTCfi changes the game by unleashing staking, lending, and lucrative yield-generating tools—all while keeping BTC ownership intact.

Babylon makes it happen with a trustless Bitcoin staking protocol. Users can now stake their BTC at the blockchain's core level and get rewarded with yield-bearing tokens on the Sui network. No transfers, no custody drama.

Why Sui? Scalability Meets Solidity

Sui, a speedy, object-centric Layer 1 blockchain constructed using the Move programming language, has been stealing the spotlight for its blazing speeds, pocket-friendly transaction costs, and dev-friendly tools. The partnership with Babylon isn't just fashionable—it's functional, with Sui's capacity to scale without sacrificing security making it a fitting home for BTCfi.

Fisher Yu lauds Sui's innovative architecture and community-driven development as key factors driving Babylon's integration. He stresses the shared vision of building a secure, permissionless financial system with Bitcoin at its heart.

BTCfi in Sui: A Layered Symphony

This collaboration goes beyond a basic staking setup. The BTCfi stack in Sui is composed of several interconnected elements:

  • Babylon's Bitcoin staking layer, allowing users to stake BTC for gains without losing ownership.
  • Liquid staking tokens (LSTs) like LBTC—minted on Sui—that can be used across various DeFi protocols.
  • Restaking capabilities through SatLayer, empowering LSTs to secure even more applications.
  • Future integration of assets like sBTC, expanding the utility of Bitcoin on Sui.

This elegant setup lets users earn rewards from multiple layers of activity while devs get to play with a brand-new source of on-chain Bitcoin liquidity.

Gearing Up for BTCfi Adoption

Sui's DeFi scene is prepping for an influx of Bitcoin-based assets. Protocols like Cetus, Aftermath, Suilend, and Ika are integrating BTCfi elements, allowing users to lend, borrow, and trade with Bitcoin-pegged tokens. Wallet providers, exchanges, and other infrastructure players are adapting too, setting the stage for widespread BTCfi adoption on the Sui network.

Peering into the Future: Bitcoin as a Bulwark

With this integration, Sui joins an exclusive club of Bitcoin-secured networks. These systems leverage Bitcoin as more than mere currency; they use it as an anchor for decentralized computation. Babylon's upcoming phases plan to unlock even more utilities, including cross-chain staking, broader validator rewards, and innovative BTC yield-generation models.

For now, one thing's for sure: the combination of Sui's performance with Bitcoin's economic muscle is much more than a technical upgrade—it's a revolution in what DeFi can be. By offering trustless BTC staking and ample room for Bitcoin utilization, Sui's helping Bitcoin step into a more active, collaborative financial future.

  1. The partnership between Sui Network and Babylon, as part of the BTCfi initiative, aims to integrate Bitcoin's security and liquidity into high-performing Decentralized Finance infrastructure.
  2. BTCfi, short for Bitcoin finance, intends to offer Bitcoin holders the opportunity to participate in DeFi pools without relinquishing their crypto assets, unlocking access to staking, lending, and yield-generating tools.
  3. Babylon is introducing a trustless Bitcoin staking protocol on the Sui network, allowing users to earn rewards while keeping ownership of their Bitcoin.
  4. Sui Network, a speedy, object-centric Layer 1 blockchain built using the Move programming language, is chosen for its scalability, low transaction costs, and developer-friendly tools.
  5. The BTCfi stack in Sui consists of Babylon's Bitcoin staking layer, liquid staking tokens (LSTs) like LBTC, restaking capabilities through SatLayer, and future integration of assets like sBTC, expanding the utility of Bitcoin on Sui.
  6. Protocols like Cetus, Aftermath, Suilend, and Ika on Sui's DeFi scene are integrating BTCfi elements, enabling users to lend, borrow, and trade with Bitcoin-pegged tokens.
  7. As Sui joins an exclusive group of Bitcoin-secured networks, future phases of Babylon's plan include cross-chain staking, broader validator rewards, and innovative BTC yield-generation models, heralding a new era for DeFi and Bitcoin.

Read also:

    Related

    Latest