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The new track of BTC liquid staking, Babylon, leads multiple projects in competition.
Overview of BTC Liquid Staking Track
The emergence of the Bitcoin staking technology Babylon has brought new earning opportunities for BTC holders. Babylon enables native asset staking of BTC on Layer 1, providing security for other blockchains through re-staking and generating returns. This solution does not require transferring BTC out of the mainnet and operates entirely based on cryptographic mechanisms, without the need for third-party involvement.
The launch of Babylon has opened up the BTC staking track and is expected to fundamentally change the BTC ecosystem. It allows BTC holders to earn staking rewards while ensuring security, and it can also address the inflation and funding threshold issues of small to medium-sized POS chains.
Currently, multiple projects have launched BTC liquid staking solutions, mainly including:
pSTAKE adopts an institutional custody model, allowing users to stake BTC and receive yBTC tokens in return. It is currently in the testnet phase, with over 40,000 users participating.
Lorenzo has implemented a principal and interest separation business similar to Pendle, issuing three tokens: stBTC, YAT, and SPT. Currently, pre-launch staking is in progress.
Lombard utilizes a decentralized Consortium to manage the staking process, allowing users to directly stake BTC to Babylon and receive LBTC. It is currently in the private testing phase.
Solv integrates the earnings of BTC Layer 2 and ETH Layer 2, issuing the solvBTC.BBN token. It has attracted over 12,000 BTC staked.
Bedrock has developed the UniBTC protocol for Babylon, allowing Ethereum users to stake wBTC to Babylon.
Master Protocol aggregates multiple BTC ecosystem projects, providing yield trading and liquid staking services.
Chakra is a ZK-driven modular BTC settlement layer that issues tlBTC tokens. It has performed outstandingly in the Babylon testnet.
With the official launch of Babylon, BTC staking is expected to bring significant changes to the BTC ecosystem, enhancing overall yield and promoting ecological development. This emerging track provides good opportunities for early projects and investors.