Originally published on: November 25, 2024
Sui, the emerging layer-1 blockchain network, is gearing up for the launch of Bitcoin staking in partnership with Babylon Labs and Lombard Protocol. This exciting development was revealed by Sui and Babylon on Nov. 25.
In just a few weeks, Bitcoin holders on Sui will have the opportunity to stake their BTC to Babylon, a Bitcoin layer-2 (L2) network, and generate Lombard’s liquid staking token (LST), LBTC. This initiative aims to bring Bitcoin liquidity to the Sui ecosystem, expand decentralized finance possibilities with LBTC as a collateral asset, and empower Bitcoin holders to maximize the potential of their assets via LBTC.
LBTC is set to become a cornerstone asset within Sui’s DeFi ecosystem, enabling lending, borrowing, and trading to tap into Bitcoin’s vast $1.8 trillion USD liquidity on Sui.
The infrastructure for depositing, minting, staking, and bridging BTC to Sui will be developed by Cubist, a leading blockchain developer. Lombard’s co-founder, Jacob Phillips, expressed enthusiasm for the untapped potential represented by Bitcoin’s $1.8 trillion market capitalization, envisioning a future where Bitcoin holders can actively participate in the next generation of onchain finance without compromising security or liquidity.
Since its launch in 2023, Sui has attracted around $1.4 billion in total value locked (TVL), making waves in the decentralized applications (DApps) scene with its high-performance capabilities.
Bitcoin LSTs have collectively accumulated a TVL of approximately $4.5 billion, according to Stakingrewards.com. SolvBTC leads the pack with a TVL of about $1.5 billion, closely followed by Lombard with a TVL of around $1 billion. These tokenized claims on Bitcoin staked to L2s like CoreChain and Babylon operate similarly to proof-of-stake networks, with stakers locking up BTC as collateral to secure the networks and earn rewards.
LBTC, Lombard’s prominent LST on Babylon, is primed to enhance the platform’s staking offerings with its upcoming distribution of rewards. While SolvBTC is currently earning a 1.2% APR from staking on CoreChain, Solv Protocol recently launched a Bitcoin LST on Solana to attract BTC holders amidst the expanding landscape of yield opportunities for digital currencies.
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