Coin overview
BABY
Ended--
Last price (USDT)
415.24K
24h total (USDT)
979.35K
Total vol (USDT)
2025-04-03 13:00:00 ~ 2025-04-10 09:30:00
Trading time (UTC+0)
2025-04-10 11:00:00 ~ 2025-04-10 15:00:00
Delivery time (UTC+0)
Total supply10.28B
Introduction
Babylon is a decentralized protocol that enables native Bitcoin staking directly on the Bitcoin blockchain without intermediaries. The protocol implements a novel shared-security architecture that extends Bitcoin's security model to the broader decentralized ecosystem. Through its architecture, BTC holders can participate in multi-staking operations while maintaining their assets on the Bitcoin network, providing verifiable security guarantees to Bitcoin Secured Networks (BSNs). Babylon Genesis is the first Bitcoin Secured Network (BSN) to leverage Bitcoin's security and serves as the control plane for security and liquidity orchestration for future BSNs. Built on the Cosmos SDK framework, Babylon Genesis introduces key innovations for enhanced PoS security and interoperability, unlocking Bitcoin's potential beyond its traditional role as a store of value.
Babylon Labs Launches Trustless Bitcoin Vaults to Unlock Native BTC for DeFi
Babylon Labs has unveiled a major development in decentralized finance (DeFi) with the launch of trustless Bitcoin vaults, enabling native BTC to be used directly in lending, stablecoin issuance, and perpetual trading without the need for custodians, bridges, or wrapped tokens. Despite being the largest crypto asset by market cap, over 99% of Bitcoin remains idle. Only about 1% is used in DeFi, mostly via wrapped products like wBTC and cbBTC, which rely on third-party custodians. Babylon’s new vault system introduces a non-custodial alternative that keeps BTC on its native blockchain while allowing it to function as DeFi collateral across multiple ecosystems. What if native BTC could power lending, stablecoins, and perps, all without bridges or custodians? Trustless Bitcoin vaults make it possible. Here’s how 🧵 pic.twitter.com/mHxPsYPcka — Babylon (@babylonlabs_io) August 6, 2025 The trustless Bitcoin vaults use pre-signed Bitcoin transactions embedded with cryptographic spending conditions. Users can only withdraw locked BTC by submitting zero-knowledge proofs (ZKPs) that align with smart contract logic. This ensures that vault rules such as liquidation thresholds or redemption rights are enforced without intermediaries. Powered by BitVM3, the system enables Bitcoin-native proof verification through zero-knowledge protocols and garbled circuits. This allows the Bitcoin UTXOs to interact with DeFi smart contracts on networks like Ethereum and Cosmos without leaving the Bitcoin chain. In practical terms, users can deposit BTC into a vault and borrow stablecoins on Ethereum. If loan terms are met, they retrieve their BTC. If not, liquidators with valid ZKPs can claim the collateral—all trustlessly and without custodial risk. The vaults also support advanced use cases such as perpetual DEX collateral, liquid staking, and stablecoin minting. Babylon’s broader protocol further allows staked BTC to earn rewards while remaining usable in DeFi. With this launch, Babylon positions trustless Bitcoin vaults as a foundational primitive for the emerging BTCFi sector, fully composable, secure, and decentralized. However, the launch coincided with a major event: a massive $1.26 billion BTC unstaking from Babylon’s staking protocol. On April 17, Lookonchain flagged four wallets that withdrew 14,929 BTC, slashing Babylon’s total value locked (TVL) by 32%.
Revolutionary Trustless BTC Vaults: Unlock Bitcoin’s Full DeFi Potential
A significant development has emerged in the cryptocurrency space, poised to redefine how Bitcoin holders interact with decentralized finance (DeFi). Babylon has recently launched its groundbreaking trustless BTC vaults, a revolutionary step that allows you to put your Bitcoin to work without relying on central custodians. This innovation promises to unlock new possibilities for Bitcoin staking and broader DeFi participation, ensuring greater security and autonomy for BTC owners. What are Trustless BTC Vaults and How Do They Work? You might be wondering, “How can I use my Bitcoin in DeFi without trusting an intermediary?” Babylon’s new trustless BTC vaults address this critical need directly. They leverage advanced cryptographic techniques and innovative protocols, primarily powered by BitVM3 technology. Here’s a simplified breakdown of how these vaults operate: BitVM3 Integration: This sophisticated technology acts as a bridge, allowing Bitcoin to interact with more complex smart contract functionalities typically found on other blockchains. Smart Contract Control: Your Bitcoin is locked within a smart contract on the Bitcoin network itself. This contract dictates the terms under which your BTC can be used, ensuring transparency and immutability. Zero-Knowledge Proofs: These proofs are a core component, allowing the system to verify that certain conditions have been met without revealing any sensitive information about the transaction or the participants. This enhances privacy and security. Essentially, these vaults create a secure, programmatic way for your BTC to participate in DeFi applications, moving away from the risks associated with centralized platforms. Why is Bitcoin Staking Now Easier and Safer? For a long time, staking Bitcoin was a complex endeavor, often requiring wrapped BTC or reliance on centralized exchanges. Babylon’s trustless BTC vaults simplify this process significantly, making Bitcoin staking more accessible and inherently safer for the average user. Consider these key advantages: No Central Intermediary: You maintain control over your private keys, eliminating the counterparty risk associated with sending your Bitcoin to a centralized entity. This is a fundamental shift towards true decentralization. Enhanced Security: By utilizing Bitcoin’s native security and integrating zero-knowledge proofs, the risk of hacks or mismanagement by third parties is drastically reduced. Your assets are protected by cryptography, not by a company’s promise. Direct Participation: You can directly participate in the economic activities of DeFi protocols, earning rewards without the need for complex bridging solutions or synthetic assets. This makes the entire process more straightforward. This development is a game-changer for anyone holding BTC and looking to generate passive income securely. Unlocking Decentralized Bitcoin‘s DeFi Power The launch of these vaults goes beyond just staking; it significantly expands the utility of decentralized Bitcoin within the broader DeFi ecosystem. Traditionally, Bitcoin’s limited smart contract capabilities have restricted its direct involvement in many DeFi applications. Babylon is changing that narrative. With trustless BTC vaults, Bitcoin holders can now engage in various DeFi activities: Secure Lending: Lend your BTC to earn interest, with the terms enforced by smart contracts rather than relying on a lending platform’s solvency. Stablecoin Issuance: Use your Bitcoin as collateral to mint stablecoins, providing liquidity and flexibility without selling your BTC holdings. Earning Rewards: Participate in protocols and earn rewards, including BABY tokens, Babylon’s native token, as reported by CoinDesk. This creates new avenues for yield generation directly from your BTC. This expansion of utility is crucial for integrating Bitcoin more deeply into the burgeoning world of decentralized finance, truly empowering decentralized Bitcoin as a foundational asset. The Role of Babylon DeFi and BitVM3 Technology Babylon’s commitment to enhancing Babylon DeFi capabilities and their strategic use of BitVM3 technology are at the heart of this innovation. BitVM3 is not just a technical detail; it represents a significant leap forward in making Bitcoin programmable without altering its core protocol. Babylon’s vision is clear: to make Bitcoin the ultimate staking asset for proof-of-stake (PoS) blockchains. By enabling native, trustless staking of BTC, they are paving the way for a more secure and capital-efficient decentralized future. The robustness of BitVM3 technology ensures that these interactions are secure and verifiable directly on the Bitcoin blockchain. This means more opportunities for you to participate in a truly decentralized economy, with Bitcoin acting as the backbone. In conclusion, Babylon’s introduction of trustless BTC vaults marks a pivotal moment for the entire cryptocurrency landscape. By leveraging BitVM3 technology and smart contracts, they have created a secure and decentralized pathway for Bitcoin holders to engage in staking and various DeFi activities. This innovation not only enhances the utility of Bitcoin but also reinforces the core principles of decentralization and user autonomy. It is an exciting step towards a future where your Bitcoin can work for you, securely and without compromise. Frequently Asked Questions Q1: What exactly are Babylon’s trustless BTC vaults? A1: Babylon’s trustless BTC vaults are a new system that allows Bitcoin holders to use their BTC for staking and decentralized finance (DeFi) activities without needing to trust a centralized intermediary. They use smart contracts and BitVM3 technology for security. Q2: How do these vaults ensure my Bitcoin is secure? A2: Security is ensured through the use of native Bitcoin smart contracts and zero-knowledge proofs. This means your BTC remains under your control via cryptographic methods, reducing reliance on third parties and mitigating risks like hacks or mismanagement. Q3: Can I earn rewards by using trustless BTC vaults? A3: Yes, by using these vaults, you can participate in various DeFi protocols to earn rewards. This includes potential staking rewards and even earning BABY tokens, Babylon’s native token, by contributing to the ecosystem. Q4: What is BitVM3 technology and why is it important for these vaults? A4: BitVM3 is a crucial technology that enables more complex computations and smart contract functionalities directly on the Bitcoin blockchain without altering its core protocol. It’s vital for making these trustless interactions and decentralized applications possible with Bitcoin. Q5: What kind of DeFi activities can I do with my Bitcoin using these vaults? A5: Beyond staking, you can engage in activities like secure lending, where your BTC earns interest, or use your Bitcoin as collateral to issue stablecoins. This significantly expands Bitcoin’s utility within the decentralized finance space. If you found this information on Babylon’s revolutionary trustless BTC vaults insightful, consider sharing this article with your network. Help us spread the word about how Bitcoin holders can now securely and transparently engage with DeFi and staking. Your share helps empower more individuals to unlock the full potential of their Bitcoin! To learn more about the latest Bitcoin DeFi trends, explore our article on key developments shaping Bitcoin institutional adoption.
BitcoinFi clears $10b in TVL as lending, staking gain real-world traction: Maestro
The latest data from Maestro suggests Bitcoin’s financial stack is maturing quickly. With $7.39 billion already staked and another $3.32 billion in restaking, the narrative of passive HODLing is steadily being replaced by active, on-chain capital deployment. Summary BitcoinFi protocols surpass $10b in total value locked, with $7.39b in staking and $3.32b in restaking, according to Maestro’s H1 2025 report. Platforms like Babylon, Liquidium, and Stacks are leading adoption across staking, lending, and L2 programmability. According to Maestro’s State of BitcoinFi report shared with crypto.news on August 7, the BitcoinFi ecosystem has surpassed $10 billion in total value locked, driven primarily by staking and lending protocols. The report, based on protocol-level data and market analysis from H1 2025, was compiled in collaboration with BitcoinFi Accelerator, marking the first comprehensive analysis of Bitcoin’s ( BTC ) transition from a static store of value to a dynamic financial network. It identifies $7.39 billion in BTC staked across yield-bearing platforms and an additional $3.32 billion engaged in restaking strategies, with Babylon, Liquidium, and Stacks emerging as early leaders in their respective niches. Bitcoin’s on-chain financial layer takes shape According to Maestro’s report, Babylon leads the staking race with $4.79 billion in TVL, but innovators like Solv, Lombard, and CoreDAO are pushing boundaries with liquid staking tokens and dual-token models that enhance capital efficiency. Meanwhile, Liquidium has carved out an early lead in Bitcoin-native lending, processing over $500 million in volume as demand for BTC-backed loans grows. “We’re witnessing the convergence of TradFi and DeFi into a Bitcoin‑denominated capital market,” Marvin Bertin, Co‑Founder and CEO of Maestro, said. “For the first time since 2009, the critical pieces for on‑chain financial apps on Bitcoin are in place, spanning exchanges, lending, and stablecoins. Bitcoin is evolving from a static reserve asset into a dynamic, productive financial network.” This shift is being accelerated by Bitcoin’s growing programmability layer. Scaling solutions, once dismissed as speculative experiments, now hold $5.52 billion in TVL—a clear signal that developers and users are embracing Bitcoin layer-2s for smart contracts and asset issuance without sacrificing self-custody. Stacks, in particular, has emerged as a standout, more than doubling its TVL in Q2 with approximately 2,000 BTC added. Beyond DeFi, Bitcoin’s metaprotocols are quietly reshaping network activity. Maestro said in the report that Runes, Ordinals, and BRC-20s accounted for 40.6% of all Bitcoin transactions in H1 2025, with BRC-20 daily volume reaching $128 million. Ordinals, after a slump in 2024, have staged a strong comeback, surpassing 80 million inscriptions and generating $681 million in fees. Even Runes, despite a late 2024 decline, saw renewed interest in early 2025, suggesting that Bitcoin’s cultural and financial use cases are expanding in tandem. Stablecoins, long considered Ethereum’s domain, are also gaining ground in BitcoinFi. With $860 million in TVL, a 42.3% quarterly increase, projects like Avalon’s USDa are demonstrating that Bitcoin-native stablecoins can thrive, particularly when paired with high-yield offerings. This growth reflects a broader trend: Bitcoin is no longer just a base layer for settlements but a full-stack financial ecosystem. Meanwhile, venture capital is taking notice. After a lull in funding, BitcoinFi startups raised $175 million across 32 deals in H1 2025, with 20 of those rounds targeting DeFi, custody, or consumer apps rather than pure infrastructure, Maestro said.
Babylon unveils trustless BTC vaults for DeFi and staking
Babylon Labs has introduced a breakthrough in decentralized finance with the launch of trustless Bitcoin vaults. Summary Babylon launched trustless Bitcoin vaults on Aug. 6, enabling native BTC to interact with DeFi without bridges or custodians. Vaults use BitVM3 and zero-knowledge proofs to enforce smart contract logic while BTC remains on-chain. The feature expands BTC’s role in DeFi and complements Babylon’s Bitcoin staking ecosystem. Announced via an Aug. 6 post on X, these vaults allow native Bitcoin ( BTC ) to be used in decentralized finance applications, such as lending, stablecoin minting, and perpetual futures, without wrapping, bridging, or relying on custodians. Bitcoin in DeFi without leaving Bitcoin The vaults function by locking Bitcoin UTXOs under preset cryptographic rules. To unlock BTC, users must submit zero-knowledge proofs that validate smart contract logic without exposing private data. Babylon leverages BitVM3, a Bitcoin-native proof verification framework using ZKPs and garbled circuits, to ensure BTC never leaves the Bitcoin blockchain. This design enforces DeFi logic, including liquidations and redemptions, without the need for intermediaries, allowing native Bitcoin to function as collateral on Ethereum ( ETH ), Cosmos ( ATOM ), and other chains. A borrower might, for example, receive $50,000 in Ethereum stablecoins and lock Bitcoin in a vault. A liquidator can claim the collateral by submitting a legitimate ZKP in the event that the value of Bitcoin declines. Use cases for the vaults include lending, stablecoin issuance, perpetual decentralized exchange collateral, and liquid staking, all while BTC remains self-custodied. Powering BTCFi and expanding Babylon’s vision The trustless vaults are part of Babylon’s broader push to integrate Bitcoin into decentralized economies. DeFi uses less than 1% of the roughly $1.8 trillion market capitalization of Bitcoin as of August 2025. Babylon’s solution, which supports native yield generation and aligns with Bitcoin’s philosophy, can unlock this capital. Additionally, the vaults are connected to Babylon’s $5 billion Bitcoin staking protocol, which went live on mainnet in Aug. 2024. Babylon positions Bitcoin as a core asset for securing proof-of-stake networks by fusing vault functionality with staking rewards, such as BABY tokens. Future developments in Babylon’s roadmap include multi-staking support, EVM integration, and a cross-chain Bitcoin liquidity layer expected in Q1 2026.
BTCFi project Babylon signs $100 million acquisition agreement with listed company AACG
Foresight News reports that BTCFi project Babylon has announced the signing of an acquisition agreement with the publicly listed exchange company ATA Creativity Global (AACG). Babylon will acquire a controlling stake in ATA for a total of $100 million, consisting of $30 million in new shares and $70 million in warrants, and will restructure the board of directors. The transaction is jointly executed by Baby BTC Strategic Capital and the Babylon Foundation.
ATA Creativity Global Acquired by Baby BTC Strategic Capital for $100 Million, Transforming into a BTCFi Listing Platform
According to ChainCatcher, Nasdaq-listed company ATA Creativity Global (Nasdaq: AACG) has announced, as per official reports, that it has signed an agreement with Baby BTC Strategic Capital, led by the Babylon Foundation as LP. Under this agreement, Baby BTC Strategic Capital will acquire a controlling stake in ATA for a total of $100 million, including $30 million in new shares and $70 million in warrants, and will restructure the board of directors. It is reported that ATA will transform into the world’s first listed platform focused on the BTCFi ecosystem, engaging in deep collaboration with the Babylon project (which currently has 45,000 BTC staked). The company will also make large-scale acquisitions of Baby tokens, benchmarking against Baby’s circulating market cap of over $100 million, and will establish a dual-track model of “BTCFi infrastructure + Baby token reserves” to bridge the compliance gap between crypto and traditional finance.
BOB Integrates Native Bitcoin into BitVM Testnet DeFi System
Key Points: BOB integrates native BTC into DeFi via BitVM testnet. Enhances non-custodial BTC transfer into DeFi. Seventh removal of third-party bridge dependencies. BOB Integrates Native Bitcoin into BitVM Testnet DeFi System BOB has integrated native Bitcoin into its DeFi system on the BitVM testnet, spearheaded by Alexei Zamyatin. The testnet aims to bring non-custodial BTC into DeFi, enhancing security and autonomy. The integration marks a crucial expansion in Bitcoin’s capabilities within decentralized finance, potentially reshaping how BTC is utilized. This move could catalyze significant financial advancements in the DeFi sector. Alexei Zamyatin, co-founder of BOB, confirmed the rollout of native Bitcoin into BitVM’s DeFi system , transforming Bitcoin’s application in decentralized finance. Eliminating third-party bridge dependence targets increased autonomy. Zamyatin led the development of BOB’s system, collaborating with institutional partners and technical groups like ZeroSync and Babylon. The initiative emphasizes the use of Bitcoin within decentralized systems. The changes are poised to impact the cryptocurrency market, particularly Bitcoin’s integration within DeFi platforms. Institutional involvement signals growing interest and the potential for wider acceptance. Potential financial implications include an increase in BTC’s use for decentralized applications, while eliminating bridges could reshape custodial landscapes . The move may prompt regulatory interest as native BTC finds new use cases. The adoption of zero-knowledge technology alongside Bitcoin Layer-2 solutions by BOB embodies innovation in digital currency utility. It opens possibilities for reducing risk and increasing the flexibility of Bitcoin in decentralized frameworks. Removing the need for third-party bridges to deploy Bitcoin across DeFi is a major step toward unlocking Bitcoin’s trillion-dollar potential. On our path to create the most secure solution for Bitcoin in DeFi, we’ve gone from concept, to BitVM2 design, to prototype and now to public testnet in just a year. The Bitcoin renaissance is accelerating. – Alexei Zamyatin, Co-Founder, BOB
Researchers Use AI to Reconstruct 3,000-Year-Old Babylonian Hymn
Researchers from LMU Munich and the University of Baghdad have used AI to reconstruct a Babylonian poem that had been lost for over 2,000 years. Named the Hymn of Babylon, the text—which praises Babylon and the god Marduk—was written 3,000 years ago and last studied in 100 BC. According to the team behind its rediscovery, it has been pieced together from 30 clay fragments that have been excavated over the years, with artificial intelligence being used to join the dots. “We used a specialized AI program to analyze and match text fragments based on combinations of cuneiform signs,” Professor Enrique Jiménez, Professor of Ancient Oriental Languages at LMU, told Decrypt. Jiménez and his colleagues use approaches based around natural language processing to indicate that fragments belong to a single text, as detailed in a methodology paper from last year. Working from the Electronic Babylonian Library Platform, which contains 1,402 manuscripts, the researchers use n-gram matching as their primary method of reconstruction, although other methods include vocabulary overlapping and searching for longest common strings (of text). According to Jiménez, the rediscovered poem was important enough to be taught as part of Babylon’s curriculum. Writing in the journal Iraq, he and co-researcher Anmar A. Fadhil also suggest that the author was likely a member of Babylon’s priestly class, given that the poem includes a section which describes priests as the “free citizens” of Babylon. In addition to celebrating Babylon’s natural resources and beauty, the hymn also includes passages extolling the city’s acceptance of foreigners and support for the poor. It reads, “The foreigners among them they do not humiliate. The humble they protect, the weak they support. Under their care, the poor and destitute can thrive. To the orphan they offer succour and favour.” The reconstruction of ancient texts using AI is has become increasingly common among scholars; in 2023 a 21-year-old student made headlines for developing a machine learning algorithm to decipher ancient Greek letters inside a sealed scroll from Herculaneum. Jiménez told Decrypt that AI is becoming “indispensable” to researchers, “particularly for reconstructing damaged or fragmented texts.” He added that, “While languages like Akkadian and Sumerian are still underrepresented in large language models, we’re actively working to improve computational tools for ancient Near Eastern studies.”
Avalon Labs AVL token rally after Yzi Labs announces investment
Avalon Labs (AVL) rallied by over 30%, rising vertically to a one-month high. The asset gained attention after Yzi Labs announced Avalon Labs as its next investment. Yzi Labs (formerly Binance Labs) announced its next investment project. After the news, the native AVL token rallied by over 30%, going vertical after weeks of flat price action. The AVL token traded at above $0.30, entering a turbulent period of hype. AVL is still down from its all-time peak of $0.75, achieved on March 10. Avalon Labs had a vertical rally, reaching a one-month peak above $30. | Source: Coinmarketcap AVL tokens have been trading since February when the airdrop was completed. Currently, only 16.6% of AVL tokens are unlocked, with multiple new token releases expected in the coming months. Around 161M AVL are in circulation out of the total supply of 1B tokens. AVL still depends mostly on PancakeSwap and other DEX. The involvement of Yzi Labs suggests AVL may gain more attention as part of the Binance ecosystem. AVL is an Ethereum-based token and will be an improbable selection for Binance Alpha, but the involvement of Yzi Labs may lead to more listings and support for AVL. Avalon Labs taps Bitcoin DeFi trend Avalon Labs is part of the Bitcoin DeFi trend, offering on-chain trading and lending with BTC as collateral. Avalon’s trading product is fully on-chain, transparent, and accessible to anyone. See also VanEck debuts PurposeBuilt fund to invest in Avalanche-based applications Avalon Labs already locks in $1.22B , down from over $2B in January. So far, the protocol carries $46.91 in collateralized loans. Despite the recent BTC rally, Avalon Labs operates at a smaller scale compared to Babylon Labs. As with other protocols, the value locked sometimes decreases with the end of the airdrop program. Bitcoin’s DeFi ecosystem has grown its value locked to $6.69B, led by Babylon Labs. Of that amount, $5.4B is staked with Babylon. However, smaller platforms are accruing their own collaterals. Yzi Labs resumes investments Avalon Labs is the first project to receive backing from Yzi Labs since April 30. For the past three months, the platform only backed five hand-picked projects. Yzi Labs focused on rounds between $3M and $10M. ‘At YZi Labs, we back projects with strong fundamentals that have the potential to revolutionize industries and create long-term impact,’ said Alex Odagiu , investment director at YZi Labs. Avalon Labs aims to become the largest issuer of stablecoins backed by BTC, unlocking the underlying value of the leading coin. Avalon Labs drew attention as the Season 8 winner of the Most Valuable Builder event. The program is a special incubator led by BNB Smart Chain, Yzi Labs, and CoinMarketCap. See also United States DOJ recovers $2.5 million linked to fraudulent crypto schemes Avalon Labs already reports 20,000 non-custodial BTC as backing, linked to 300K reported daily active users. Avalon Labs is also the second-largest protocol based on Collateralized Debt Position (CDP). The project has issued over $613M in its USDa stablecoin, second only to DAI/USDS by Sky Protocol. Avalon Labs will use the funding from Yzi Labs to become compliant in several jurisdictions. The protocol’s goal is to become viable for institutional users and create a public fund for BTC staking and institutional lending. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
Bitcoin Staking Matures with Over $4 Billion in BTC Staked
Key Points: $4 billion in BTC staked via Babylon. Yields range from 1-2% annually. Increased adoption of liquid staking tokens. Bitcoin Staking Matures with Over $4 Billion in BTC Staked Bitcoin staking has achieved a milestone, with the Babylon Protocol surpassing $4 billion in BTC allocated into yield strategies as of May 2025. Babylon Protocol and Advancements in Bitcoin Staking Babylon Protocol, a key player in Bitcoin staking , enables holders to time-lock BTC for yield without bridges, with over $4 billion staked. Marketing Director Vincent Maliepaard discussed Babylon’s momentum. Native BTC staking offers 1–2% annual yields, indicating robust interest. “Babylon’s mechanics and momentum highlight a significant evolution in Bitcoin staking, allowing users to access yield strategies without bridging or wrapping.” — Vincent Maliepaard, Marketing Director at Sentora Liquid Staking Tokens like LBTC and xSolvBTC represent staked BTC, facilitating secondary DeFi activities. The Staking Summit in Dubai presented BTC wrappers in Layer 2 environments, highlighting innovative yield approaches. Natan explored L2-native tokens for BTC staking, while Yair Cleper of Lava Network introduced restaking for efficient blockchain data routing. Impact on Financial Markets and Future of Yield Strategies Bitcoin yield strategies impact financial markets, with growth in total value locked and wider utilities in DeFi. Governance tokens and L2 tokens distributing rewards show market adaptation. This model aligns with BTC-backed DeFi tools, enabling credit systems without selling BTC. Future implications include sustainable yield offerings, with regulatory attention on yield strategies. Bitcoin yield has matured from centralized finance to native options, opening opportunities for decentralized finance innovation. Insights indicate potential for enhanced financial infrastructure, leveraging BTC’s security within decentralized environments. Historical trends from Ethereum’s DeFi space provide a precedent for expansion of similar strategies.
Understanding Bitcoin yield: staking, liquid staking tokens and vaulted strategies
The following is a guest post and analysis from Vincent Maliepaard, Marketing Director at Sentora. The Bitcoin market cap recently surpassed $2 trillion, and with over 50 million bitcoin addresses with a balance, the value of the asset is becoming undeniable. However, where traditional currencies like dollars or euros typically pay interest on holdings, Bitcoin provides no such rewards for simply holding the asset. More recently though, two distinct pathways have emerged to change that picture: Native Bitcoin “staking” – lock BTC in the Babylon protocol and earn fees. Liquid‑staking tokens (LSTs) – mint a tradable receipt such as LBTC that keeps the staking rewards flowing while restoring liquidity. These two solutions provide a viable route to earning stable yield on your Bitcoin. Let’s dive into what this entails and how it works. From Proof‑of‑Stake to Proof‑of‑Bitcoin Babylon went live on mainnet in late‑2024, letting BTC holders time‑lock coins on the Bitcoin chain and delegate them to so‑called Bitcoin‑Secured Networks. The networks pay out fees in BTC, producing a yield of roughly 1 – 2 % currently. The idea has caught on quickly: Babylon reports more than $4 billion in BTC staked on the protocol since last year. Key features No wrapping or bridges: BTC never leaves its native chain. Main risks: a protocol bug or “slashing” if a delegated validator misbehaves. Drawback: staked coins stay immobile until an unbonding timer expires. Liquid staking: LBTC puts mobility back on the menu Lock‑ups are a deal‑breaker for many traders. Liquid‑staking tokens fix that by issuing a transferable asset that represents the underlying stake plus its future rewards. An example of such a liquid staking token for Bitcoin is LBTC from Lombard Finance 1:1 minting: stake BTC through Lombard’s Babylon contracts and receive LBTC on an EVM chain. (Lombard) Seven‑day exit: burn LBTC to trigger the same unbond period as native Babylon staking, about a week. Nonetheless, users can easily exit LBTC by trading it on DEXs. Real liquidity: daily on‑chain volume averages more than $200 million, and liquidity is large enough to facilitate transactions up to $30 million without significant slippage; enough for most portfolio‑sized exits. Custody trade‑off: holders must trust Lombard’s mint‑and‑burn smart contracts and the Babylon validator set. While LBTC inherits the base staking reward, its real super‑power is capital efficiency: users can post LBTC as collateral, spin it into DeFi pools or simply sell it on a DEX while the original BTC keeps working. Vaulting the yield curve While this sounds enticing, earning a notable return with your Bitcoin LST can be complicated. As a retail user, you have to understand complex dynamics in DeFi related to risk and return of different protocols and strategies. Even if you do have a basic understanding of these factors, users must still actively manage their positions, as returns often fluctuate depending on the markets. That means that to sustain a notable APY, users have to occasionally switch strategies or take action to keep their position profitable. Fortunately, there are other options. Lombard offers a variety of vaults that aim to simplify this process and keep earning yield on Bitcoin as straightforward as possible. Let’s take a look at one recently launched vau< the Sentora DeFi vault. Sentora, born from the merger of IntoTheBlock’s with Trident’s Digital, launched a BTC Yield Vault on Lombard recently. The product accepts either wBTC or LBTC and targets an APY of ~6 %, significantly more than plain staking. How it earns the spread The vault automatically executes several different strategies in different capacities depending on the market conditions. This is all automated and requires no manual action from users or vault managers. Some of these strategies include the following: Over‑collateralised lending – lends BTC‑derived assets on lending markets like Aave for interest. Pendle yield trading – splits and sells future yield streams, front‑loading extra return. Delta‑neutral borrows – borrows other assets such as stablecoins to deploy in delta-neutral high yield strategies Every one of these strategies is plugged into Sentora’s real‑time DeFi risk engine; the same data institutions use to monitor risk exposure across DeFi. Positions that drift beyond preset limits are automatically rebalanced. Risk‑reward snapshots Native staking: tight risk surface, modest return. Ideal for cold‑storage purists who can tolerate lock‑ups. LBTC alone: same base yield, but tokens stay liquid, at the cost of smart‑contract and bridge exposure. Users can amplify yield by interacting with DeFi protocols. Sentora Vault: broader risk because multiple DeFi venues are involved, but mitigated by automated risk management and hedges. What to watch next Holding Bitcoin can finally pay off beyond price appreciations. With different options available for different needs and risk appetites, Bitcoin holders can finally benefit from advancements in DeFi. And with the recent increases in LBTC volume, it is becoming feasible for larger institutional trading desks to utilize these strategies, likely further pushing innovation in the Bitcoin staking area.
Understanding Bitcoin yield: staking, liquid staking tokens and vaulted strategies
The following is a guest post and analysis from Vincent Maliepaard, Marketing Director at Sentora. The Bitcoin market cap recently surpassed $2 trillion, and with over 50 million bitcoin addresses with a balance, the value of the asset is becoming undeniable. However, where traditional currencies like dollars or euros typically pay interest on holdings, Bitcoin provides no such rewards for simply holding the asset. More recently though, two distinct pathways have emerged to change that picture: Native Bitcoin “staking” – lock BTC in the Babylon protocol and earn fees. Liquid‑staking tokens (LSTs) – mint a tradable receipt such as LBTC that keeps the staking rewards flowing while restoring liquidity. These two solutions provide a viable route to earning stable yield on your Bitcoin. Let’s dive into what this entails and how it works. From Proof‑of‑Stake to Proof‑of‑Bitcoin Babylon went live on mainnet in late‑2024, letting BTC holders time‑lock coins on the Bitcoin chain and delegate them to so‑called Bitcoin‑Secured Networks. The networks pay out fees in BTC, producing a yield of roughly 1 – 2 % currently. Babylon Staking Statistics The idea has caught on quickly: Babylon reports more than $4 billion in BTC staked on the protocol since last year. Key features No wrapping or bridges: BTC never leaves its native chain. Main risks: a protocol bug or “slashing” if a delegated validator misbehaves. Drawback: staked coins stay immobile until an unbonding timer expires. Liquid staking: LBTC puts mobility back on the menu Lock‑ups are a deal‑breaker for many traders. Liquid‑staking tokens fix that by issuing a transferable asset that represents the underlying stake plus its future rewards. An example of such a liquid staking token for Bitcoin is LBTC from Lombard Finance 1:1 minting: stake BTC through Lombard’s Babylon contracts and receive LBTC on an EVM chain. (Lombard) Seven‑day exit: burn LBTC to trigger the same unbond period as native Babylon staking, about a week. Nonetheless, users can easily exit LBTC by trading it on DEXs. Real liquidity: daily on‑chain volume averages more than $200 million, and liquidity is large enough to facilitate transactions up to $30 million without significant slippage; enough for most portfolio‑sized exits. Custody trade‑off: holders must trust Lombard’s mint‑and‑burn smart contracts and the Babylon validator set. Daily Transaction volume of LBTC While LBTC inherits the base staking reward, its real super‑power is capital efficiency: users can post LBTC as collateral, spin it into DeFi pools or simply sell it on a DEX while the original BTC keeps working. Vaulting the yield curve While this sounds enticing, earning a notable return with your Bitcoin LST can be complicated. As a retail user, you have to understand complex dynamics in DeFi related to risk and return of different protocols and strategies. Even if you do have a basic understanding of these factors, users must still actively manage their positions, as returns often fluctuate depending on the markets. That means that to sustain a notable APY, users have to occasionally switch strategies or take action to keep their position profitable. Fortunately, there are other options. Lombard offers a variety of vaults that aim to simplify this process and keep earning yield on Bitcoin as straightforward as possible. Let’s take a look at one recently launched vault; the Sentora DeFi vault. Sentora, born from the merger of IntoTheBlock’s with Trident’s Digital, launched a BTC Yield Vault on Lombard recently. The product accepts either wBTC or LBTC and targets an APY of ~6 %, significantly more than plain staking. How it earns the spread The vault automatically executes several different strategies in different capacities depending on the market conditions. This is all automated and requires no manual action from users or vault managers. Some of these strategies include the following: Over‑collateralised lending – lends BTC‑derived assets on lending markets like Aave for interest. Pendle yield trading – splits and sells future yield streams, front‑loading extra return. Delta‑neutral borrows – borrows other assets such as stablecoins to deploy in delta-neutral high yield strategies Every one of these strategies is plugged into Sentora’s real‑time DeFi risk engine; the same data institutions use to monitor risk exposure across DeFi. Positions that drift beyond preset limits are automatically rebalanced. Risk‑reward snapshots Native staking: tight risk surface, modest return. Ideal for cold‑storage purists who can tolerate lock‑ups. LBTC alone: same base yield, but tokens stay liquid, at the cost of smart‑contract and bridge exposure. Users can amplify yield by interacting with DeFi protocols. Sentora Vault: broader risk because multiple DeFi venues are involved, but mitigated by automated risk management and hedges. What to watch next Holding Bitcoin can finally pay off beyond price appreciations. With different options available for different needs and risk appetites, Bitcoin holders can finally benefit from advancements in DeFi. And with the recent increases in LBTC volume, it is becoming feasible for larger institutional trading desks to utilize these strategies, likely further pushing innovation in the Bitcoin staking area. The post Understanding Bitcoin yield: staking, liquid staking tokens and vaulted strategies appeared first on CryptoSlate.
Babylon: Bitcoin Staking Volume on Babylon Genesis Chain Exceeds 50,000, 60% Activated
Babylon released the second phase of the mainnet launch update, revealing that the total amount of Bitcoin staked on the Babylon Genesis chain has exceeded 50,000, with 60% of the staked amount activated to ensure the security of the Babylon Genesis network and earn staking rewards.
Nexus Mutual to provide insurance coverage for Babylon's Bitcoin staking layer
Crypto insurance provider Nexus Mutual is developing a slashing protection product for Bitcoin-based Babylon’s proof-of-stake mechanism. Babylon Labs is advising the development, though not participating directly in the cover products. The companies say there will be several cover options “tailored to all of the different participants” on the Babylon network, including individual stakers and institutions. Babylon is a so-called “Bitcoin Secured Network,” i.e. a network that relies on Bitcoin’s proof-of-stake security model to power a more flexible proof-of-stake system that can support smart contracts. The protocol, which began rolling out its “Genesis” mainnet earlier this month, pays stakers to lock up funds used as economic security. Proof-of-stake systems rely on a process called “slashing” as a penalty mechanism that confiscates a portion of a validator's staked tokens for malicious or negligent behavior, like double-signing or being offline. While the process is designed to improve staking participation, theoretically, slashing itself has failure models. “We’re excited about Nexus Mutual’s upcoming slashing protection product and what it could mean for Bitcoin stakers,” said Clayton Menzel, head of BD at Babylon, said in a statement. “This collaboration supports our mission of unlocking bitcoin to secure the decentralized economy, offering bitcoin holders a way to participate in staking with greater peace of mind.” Nexus Mutual, founded in 2019, calls itself “the largest and most trusted underwriter for crypto risk.” The company claims to underwrite over $5.5 billion worth of digital assets and to have paid out on “100% of valid claims,” totaling over $18 million. Some 45,000 bitcoins are staked through Babylon, which is used to secure anything from other PoS chains to decentralized applications like asset wrapping services. Allnodes, Figment and Galaxy Digital are among the protocol’s 250 "finality providers," aka validators. Several major crypto firms plan to integrate Babylon's bitcoin staking layer, including custodians Anchorage and Bitgo, as well as exchanges like OKX. BABY currently trades at $0.083 and is up 7.82% over the last 24 hours, according to The Block's price data . Platforms like Blockdaemon or Chainproof offer similar slashing insurance products that compensate stakers for losses if and when they are penalized. These products generally offer premiums based on the value of the staked amount and validator reliability.
Sui Teams Up with Babylon Labs to Enable Bitcoin Native Staking
Babylon and Sui deepen technical collaboration, taking Sui's integration with Bitcoin to new heights. Bitcoin staking protocol developer Babylon Labs and groundbreaking Layer1 blockchain Sui (designed for scalability, security, and mass adoption) today announced a joint effort where Sui will play a more significant role in Babylon's Bitcoin ecosystem. This upgrade builds upon their integration announced last year, and Sui will officially become the Bitcoin Enhancing Network (BEN) on the Babylon protocol. How Babylon's Bitcoin Staking Operates on the Sui Network Bitcoin holders can now stake their Bitcoin through the Babylon protocol while maintaining full custody of their assets, providing additional security to the Sui network and earning staking rewards simultaneously. This mechanism allows Sui to leverage Bitcoin staking to enhance network security and offers participants a convenient pathway into the Sui ecosystem. It also presents unprecedented opportunities for Bitcoin holders, enabling them to participate in DeFi with heightened security. Fisher Yu, Chief Technology Officer of Babylon Labs, stated: "Babylon and Sui are collaboratively building a deeper cross-chain utility to create more earning opportunities for Bitcoin holders seeking a safer entry into DeFi. As the infrastructure layer for Bitcoin, Babylon secures decentralized systems through a trustless, self-custody Bitcoin staking mechanism to unlock Bitcoin's full utility potential. Through the Babylon Bitcoin Staking Protocol, Sui gains access to the world's largest and most decentralized secure network, opening up new opportunities for Bitcoin holders." Evan Cheng, Co-Founder and CEO of Mysten Labs, the initial development team of Sui, expressed: "Our ongoing collaboration with Babylon Labs aims to bring Bitcoin's core advantages – scalability, security, and liquidity – into the high-performance DeFi ecosystem. Through this integration, Sui further solidifies its position as the premier Bitcoin DeFi platform, allowing Bitcoin holders to efficiently leverage their assets to create value." Through the integration with Babylon, Sui introduces a new economic paradigm supported by Bitcoin's scalability. The integrated infrastructure will expand Bitcoin's liquidity and security alongside the Sui network, unlocking new applications and decentralized services secured by Bitcoin. This integration represents a broader transformation in the blockchain industry—$1.5 trillion worth of assets (Bitcoin) has been expanded to secure and empower a fast, scalable, programmable blockchain ecosystem (such as Sui). For Bitcoin holders, the Babylon Protocol programmatically allows users to autonomously transform their held assets into a foundational source of yield, further extending Bitcoin's utility beyond store of value and medium of exchange functions, making it a more pervasive part of the digital economy. About Babylon Labs Babylon Labs focuses on a Bitcoin-backed security-sharing protocol, aiming to build a decentralized world secured by Bitcoin. The latest innovation from Babylon Labs, the world's first global trustless, self-custodial Bitcoin staking protocol, allows holders to directly stake Bitcoin in decentralized systems such as PoS chains, Layer2 networks, and the Data Availability (DA) layer, enabling staking rewards without relying on third-party custody, cross-chain bridges, or wrapping services. This innovation aims to combine Bitcoin's high security and widespread adoption with the efficient scalability of PoS systems, significantly expanding Bitcoin's utility value. About Sui Sui is a groundbreaking Layer1 blockchain and smart contract platform, with an architecture that has been thoroughly redesigned to enable a fast, private, secure, and inclusive experience of digital asset ownership. Based on the Move programming language's object-centric model, it supports parallel transaction processing, sub-second finality, and rich on-chain asset capabilities. Through its horizontally scalable computing and storage architecture, Sui offers unparalleled transaction speeds at low cost for various applications. This leap in blockchain technology provides an ideal platform for developers and creators to build the ultimate user experience. This article is contributed content and does not represent the views of BlockBeats
Babylon: Governance Proposal to Amend Second-Stage Staking Unbinding Fee Parameters Officially Launched
The Bitcoin staking protocol Babylon announced on X platform that the governance proposal to modify the Babylon Genesis chain parameters has officially launched. This proposal aims to adjust the unbinding fee for the second stage of staking from 100 sats/vbyte to 30 sats/vbyte. Voting is now open and will close at 7 AM UTC on Monday, April 21.
Babylon: Governance Proposal to Amend Second Phase Staking Unbinding Fee Parameters Officially Launched
The Bitcoin staking protocol Babylon announced on the X platform that a governance proposal to amend the Babylon Genesis chain parameters is now officially launched. This proposal aims to adjust the unbinding fee for the second phase of staking from 100 sats/vbyte to 30 sats/vbyte. Voting is now open and will close at 7 AM UTC on Monday, April 21st.
Babylon: The governance proposal to modify the second phase of the pledge unbinding fee parameters has been officially launched
the Bitcoin collateral protocol Babylon posted on X platform, stating that the governance proposal to modify the parameters of the Babylon Genesis chain has officially launched. The proposal aims to adjust the unbundling fee for the second stage of collateral from 100 sats/vbyte to 30 sats/vbyte. Voting is now open, with a deadline of 7:00 AM on Monday, April 21st, UTC time.
Babylon Sees $1.26B in BTC Unstaked, TVL Drops 32% Amid Lombard Transition
A massive unstaking event has rocked Babylon, a prominent Bitcoin staking protocol, leading to a staggering $1.26 billion worth of BTC being withdrawn and slashing its total value locked (TVL) by 32%. On April 17, blockchain analytics firm Lookonchain flagged four wallet addresses responsible for unstaking 14,929 BTC from Babylon. One address alone accounted for the lion’s share—13,129 BTC—valued at roughly $1.1 billion based on Bitcoin’s market price of around $84,400. The exit triggered a sharp decline in Babylon’s TVL, which dropped from $3.97 billion to $2.68 billion, according to DefiLlama data . While the identities behind the unstaking addresses remain unknown, speculation has spread rapidly within the crypto community. Some users on X suggested the funds could belong to the Chinese government, while others believed it might be part of a strategic portfolio rotation or risk-off move. Adding fuel to the discussion, decentralized finance platform Lombard Finance acknowledged it was behind the movement. In a public post retweeted by Babylon Labs, Lombard stated it had initiated the BTC withdrawal as part of its transition to a new group of finality providers. The move was deliberately timed to align with the end of Babylon’s Phase 1 Cap 1 on April 24, ensuring users wouldn’t forfeit staking rewards. Lombard further assured the community that the withdrawn BTC would be restaked once the unbonding phase was complete. This large-scale activity closely follows Babylon’s April 3 airdrop announcement , where 600 million BABY tokens were allocated to early adopters, including stakers, developers, and NFT holders. That announcement also triggered a smaller wave of withdrawals, with $21 million in BTC unstaked shortly after. Meanwhile, Bybit recently launched a new BTC staking campaign through its Web3 platform in partnership with Lombard Finance, offering users fresh incentives to explore decentralized finance (DeFi) rewards. The initiative runs from April 11 to May 9. If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter , LinkedIn , Facebook , Instagram , and CoinMarketCap Community. “Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
Babylon sees $1.2 billion Bitcoin unstaked as TVL drops 32%
Babylon (CRYPTO:BABY), a Bitcoin (CRYPTO:BTC) staking protocol, experienced a significant outflow as $1.26 billion worth of Bitcoin was unstaked, leading to a 32% decline in its total value locked (TVL). On April 17, blockchain analytics firm Lookonchain identified four wallet addresses responsible for the movement of 14,929 Bitcoin from the protocol. One of these addresses alone accounted for $1.1 billion of the unstaked assets, with Bitcoin trading near $84,400 at the time. Following the event, Babylon’s TVL decreased from $3.97 billion to $2.68 billion, according to data from DeFiLlama. The unstaking activity has sparked speculation in the crypto community regarding the identity of the wallet holders. Some users on social media suggested the Bitcoin could be linked to the Chinese government, while others proposed it might be a strategic rotation, a risk-off move, or simply a trader’s liquidation. No definitive information has been provided about the owners of the addresses. The timing of the unstaking coincided with an announcement from Lombard Finance, a decentralised finance protocol, which stated it was moving Bitcoin as part of a transition to a new set of finality providers. “All of this BTC will be staked back into Babylon as soon as the unbonding is complete,” Lombard clarified, as Babylon Labs retweeted his message to reassure users about the temporary nature of the withdrawal. Lombard also noted that the unstaking was coordinated with the end of Babylon’s phase 1 cap 1 on April 24 to ensure users did not miss out on rewards. This major movement comes shortly after Babylon’s airdrop for early adopters, which distributed 600 million BABY tokens to phase 1 stakers, NFT holders, and developers. Following the airdrop, $21 million in Bitcoin was also unstaked, which Bitlayer (CRYPTO:BTR) co-founder Kevin He described as a typical short-term market reaction. Babylon, which reached over $6 billion in TVL in December, has positioned itself as a key player in Bitcoin DeFi by enabling non-custodial staking and integrating with multiple blockchains. At the time of reporting, the Babylon (BABY) price was $0.0748, and the Bitcoin (BTC) price was $84,819.27.
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