As a seasoned crypto investor with a knack for spotting promising partnerships and innovative projects, I find the collaboration between Babylon Labs, Lombard Protocol, and Sui Foundation extremely intriguing. Having been through the rise and fall of several blockchain projects, I’ve learned to appreciate the potential that lies in unlocking the liquidity of established assets like Bitcoin.
Babylon Labs and Lombard Protocol are teaming up with the Sui Foundation in a collaboration aimed at introducing liquid Bitcoin staking on the Sui blockchain platform.
As stated in a press release dated November 25th, beginning in the upcoming month, individuals holding Bitcoin will have the opportunity to deposit their BTC onto Babylon, receiving LBTC – Lombard’s liquid staking token – as a reward instead.
As a researcher delving into the intricacies of Sui’s DeFi landscape, I am confident that the integration of LBTC will pave the way for a transformative experience. This transformation brings forth novel avenues for lending, borrowing, and trading within Sui. Moreover, it serves to liberate and mobilize Bitcoin’s vast $1.8 trillion market value, offering Bitcoin holders an opportunity to explore new utility dimensions for their BTC on Sui.
Cubist, a blockchain development firm, is constructing the essential framework for depositing, staking, minting, and transferring Bitcoin to the Sui network.
As stated by Jacob Phillips, the co-founder of Lombard, the collaboration is aimed at constructing a future where Bitcoin owners can take part in the upcoming era of on-chain finance without sacrificing safety or ease of trading.
Currently, Sui is rapidly expanding as a hub for swift and effective decentralized applications (DApps). By 2024, it had amassed a total value locked (TVL) of $1.4 billion, as reported by DeFiLlama. It’s seen as a formidable competitor to Solana in the blockchain industry.
On the platform known as Babylon, Lombard’s LBTC is the most significant liquid staking token in terms of liquidity. However, at present, the rewards for staking have not been disbursed yet. The combined market value of all Bitcoin-related liquid staking tokens (LSTs) stands at approximately $4.5 billion, with Lombard controlling around $1 billion of that total amount.
In similar fashion to platforms such as SolvBTC, these Bitcoin LSTs function as security for staking Bitcoin within proof-of-stake (PoS) systems, yielding approximately 1.2% return per year.
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2024-11-25 21:24